Fitch trims American Airlines

Fitch Ratings said it downgraded American Airlines Inc. to B- from B.

“The downgrade is driven by a slower than expected rebound in air travel related to the coronavirus pandemic. The likelihood that air traffic will remain subdued for the next several years, combined with American's heavy debt load create significant pressure on credit metrics throughout Fitch's forecast period. Reduced capacity to raise new capital as many of the company's previously unencumbered assets have already been pledged for secured financings also contributes to the negative rating action,” Fitch said in a press release.

The negative watch mirrors the high degree of uncertainty around the recovery in air traffic from the pandemic, the agency said.

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