On Sept. 18, 2003, Standard&Poor's Ratings Services assigned its 'CCC' rating to AMR Corp.'s (B-/Negative/--) $300 million 4.25% senior unsecured convertible notes due 2023, a Rule 144a offering. Issuance of the convertible notes bolsters further AMR's liquidity, with unrestricted cash now estimated at over $2.5 billion, more than double the level in April 2003, when the company nearly filed for bankruptcy. 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 much
