Moody's rates AMR's private notes B1

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Moody’s Investors Service assigned a "B1" rating to American Airlines’ privately placed $276 million of senior secured notes due August 2016.

The ratings agency is maintaining its other ratings of American and its parent AMR Corporation, including the Caa1 corporate family and probability of default ratings and the SGL-2 speculative grade liquidity rating.

The outlook is stable.

American used the notes' proceeds to refinance its Series 1999-1 EETCs, which matured on 15 October. Twelve Boeing 1999 vintage aircraft secure American’s obligations under the notes including: nine 737-800s, one 767-300ER and two 777-200ERs.

“Moody’s believes that the importance of Boeing’s 737-800, 767-300ER and 777-200ER models to American’s route and fleet strategy and the effective cross-default and cross-collateralization given the single note and security agreement indicate a high probability of American affirming its obligations under the notes, in the event of a reorganisation of American or AMR,” says Moody’s VP, Jonathan Root.

The last rating action was on 23 September when Moody’s assigned a "B2" rating to American’s $450 million of senior secured notes and affirmed all of its other ratings of AMR and American, including the "Caa1" corporate family and probability of default ratings.