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Published on 10/20/2016 in the Prospect News Bank Loan Daily, Prospect News High Yield Daily and Prospect News Investment Grade Daily.

Fitch: American Airlines re-priced loans BB+

Fitch Ratings said it assigned a BB+ rating and recovery rating of RR1 to American Airlines, Inc.’s repriced 2016 credit facilities.

The agency said it currently rates the company’s 2013 Citicorp credit facility at BB+ with recovery rating of RR1.

The company is in the process of re-pricing two of its existing term loans, Fitch said.

The company's $970 million 2013 Citicorp term loan B-1 is secured by slots at Washington Reagan, flight simulators and certain real estate, the agency said, and matures in 2019.

The $1 billion 2016 term loan B is secured by the company's mainline spare parts and matures in 2023, Fitch said.

The re-pricing will not affect the key provisions or maturity dates of either of the term loans, the agency added.

American's BB- issuer default rating is supported by the strong financial results that American has posted since its merger with U.S. Airways and concurrent emergence from bankruptcy, Fitch explained.

The agency said it expects continued solid financial results from American over the intermediate term based on a stable domestic travel environment, moderate fuel costs and benefits of the company's on-going integration and fleet renewal processes.


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