MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services downgraded
AMR Corp. and unit American Airlines Inc., citing expected heavy losses and
negative operating cash flow caused by record high fuel prices.
The companies' long-term corporate credit ratings were cut to 'B-' from 'B'.
The outlook is negative.
S&P affirmed the 'B-3' short-term rating on AMR.
"We expect AMR to report a heavy loss this year, which we estimate could
exceed $2 billion (before charges for asset writedowns and gains on sale of
assets), because of very high and volatile, albeit recently reduced, fuel
prices," said S&P analyst Philip Baggaley.
TFN.newsdesk@thomson.com
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