S&P: American Airlines on developing watch

Standard & Poor's said it revised the CreditWatch implications to developing from negative on American Airlines Inc.'s 2001-1 pass-through equipment trust certificates. The revised CreditWatch applies to the CC rating on the 2001-1 class A1 pass-through certificates and the C ratings on the class B and class C certificates.

The 2001-1 pass-through equipment trust certificates are secured by MD-83 aircraft delivered in 1997-1999.

"We still believe the most likely scenario is that these certificates will not be fully repaid," said S&P credit analyst Phil Baggaley in a news release. "These are some of American's newer MD-80 series planes, but the last of the certificates come due in 2021, by which time we expect American will no longer be flying any planes of that model."

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