Research Update: American Airlines Group Inc. 'BB-' Corporate Credit Rating Affirmed; Selected EETC Ratings Revised

We expect Fort Worth, Texas-based American Airlines Group Inc.'s (AAG) credit measures to weaken slightly in 2017, as a result of lower earnings and heavy capital spending, but they should still support our rating on the company. We are affirming our 'BB-' corporate credit rating on AAG and most issue-level ratings. We are revising our ratings on selected enhanced equipment trust certificates (EETCs) as a result of changes in collateral coverage outside of our previous expectations. The stable outlook reflects our expectation that, despite some near-term softening, AAG's credit ratios should improve in 2018 and continue to support the rating, with funds flow to debt averaging around 20% over 2017-2018. On July 25, 2017, S&P Global Ratings affirmed its 'BB-'

...(Editor's Note: When we upgraded the American Airlines Inc. 7.93% pass-thru certificates series 1999-1G (originally issued by America West Airlines) to 'A' on July 25, 2017, we did not upgrade all the certificates due to an administrative error. We are republishing the report to reflect our correction of that error.)...

Research Update