On Nov. 29, 2004, Standard&Poor's Ratings Services assigned its 'B+' bank loan rating and its '1' recovery rating to an $850 million amended and restated senior secured credit facility available to AMR Corp. subsidiary American Airlines Inc. (B-/Stable/--). Terms are preliminary and subject to change. AMR (B-/Stable/--) guarantees the facility. The credit facility consists of a $600 million revolving credit and a $250 million senior secured term loan. The 'B-' corporate credit ratings on AMR Corp. and American Airlines Inc. reflect a weak financial profile following several years of huge losses, a heavy debt and pension burden, and participation in the competitive, cyclical, and capital-intensive airline industry. An improved cost structure following labor concessions and fairly good liquidity
