On Feb. 18, 2003, Standard&Poor's Ratings Services lowered its ratings on selected aircraft-backed debt of American Airlines Inc. (BB-/Watch Neg./B) as part of a general review of U.S. airline aircraft-backed debt. The revised ratings and other aircraft-backed debt ratings that were not changed remain on CreditWatch with negative implications where they were placed on Jan. 22, 2003, as do the corporate credit ratings on American and its parent, AMR Corp. (BB-/Watch Neg./--)and other, nonaircraft-backed debt ratings. The downgrades reflect further deterioration in aircraft values, and thus collateral coverage for many issues of aircraft-backed debt. The declines in asset protection varied from case to case, as did other important considerations, such as the likelihood of an airline choosing to
