Research Update: American Airlines Group Corporate Credit Rating Affirmed, Outlook Stable; Senior Unsecured Debt Ratings Raised To 'BB-'

We expect that Fort Worth, Texas-based American Airlines Group Inc.'s (AAG) earnings and cash flow will be somewhat weaker in 2016 and 2017 than the very strong levels the company posted in 2015 because of lower pricing in some markets. We anticipate that AAG's credit measures will slip somewhat from their 2015 levels but continue to support our ratings. We are affirming our 'BB-' corporate credit rating on American Airlines Group Inc. and its subsidiaries American Airlines Inc. and US Airways Inc. At the same time, we are raising our issue-level ratings on the company's senior unsecured debt to 'BB-' from 'B+' and are revising our recovery ratings on the debt to '4' from '5'. Additionally, we are affirming our

...(Editor's Note: In the original version of this report's ratings score snapshot section, we incorrectly listed the company's country risk assessment as Very Low. In fact, our country risk assessment on the company is just Low. A corrected version follows.)...

Research Update