Fort Worth, Texas-based American Airlines Group Inc. (AAG) is generating record earnings and cash flow, aided by a steep drop in fuel prices, despite a recent softening in its revenues. We expect that AAG's credit measures will continue to strengthen despite the company's heavy capital expenditures and $2 billion share buyback authorization. We are raising our corporate credit ratings on American Airlines Group Inc. and its subsidiaries American Airlines Inc. and US Airways Inc. to 'BB-' from 'B+'. The outlook is stable. At the same time, we are raising or affirming our ratings on American Airlines Inc. and US Airways Inc.'s enhanced equipment trust certificates (EETCs), based on the higher corporate credit ratings and the particular circumstances of the certificates.
