On Aug. 5, 2003, Standard&Poor's Ratings Services withdrew its 'CCC' rating on AMR Corp.'s (B-/Negative/--) proposed $250 million senior unsecured convertible notes. The rating was withdrawn because AMR withdrew the debt offering. AMR and its principal operating subsidiary, American Airlines Inc. (B-/Negative/--), were upgraded to current levels June 20, 2003, based on expected earnings and cash flow improvement as a result of the April 2003 cost-saving agreements with American's labor groups. AMR remains highly leveraged and vulnerable to any further airline industry revenue deterioration, but near-term liquidity is adequate, with about $2.1 billion of unrestricted cash. The annual $1.8 billion of labor concessions over five years and about $200 million of added concessions from suppliers and private lessors
