On Feb. 11, 2004, Standard&Poor's Ratings Services assigned its 'CCC' rating to AMR Corp.'s $300 million senior convertible notes due 2024 (guaranteed by subsidiary American Airlines Inc.; both rated B-/Stable/--), a Rule 415 shelf drawdown. The rating is two notches below the corporate credit rating of AMR, because the large amount of secured debt and leases relative to AMR's owned and leased asset base places senior unsecured creditors in an essentially subordinated position. The convertible note offering bolsters AMR's liquidity in advance of heavy upcoming debt maturities and pension obligations. The company continues to make progress on narrowing losses, reflecting mostly substantial labor cost concessions agreed in April 2003, and on gradually restoring a weak financial profile. The
