S&P assigns American Airlines bonds CCC+

Standard & Poor's said it assigned its CCC+ rating to American Airlines Inc.'s (B/positive) $125 million Dallas/Fort Worth International Airport special facility revenue refunding bonds, series 2007, due 2030.

The bonds are guaranteed by American's parent, AMR Corp. (B/positive/B-2) and are secured by payments made by American to the airport authority, S&P said, adding that proceeds are being used to refund the outstanding revenue bonds, series 1992 (rated CCC+), whose rating is withdrawn.

The agency noted that ratings on AMR and American reflect participation in the competitive, cyclical and capital-intensive airline industry, erosion of financial strength by substantial losses during 2001-2005 and a heavy debt and pension burden.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.