S&P Downgrades AMR Deeper Into Junk (AMR)
AMR Corporation (NYSE: AMR), the parent of American Airlines, is already in trouble and many worry that the air carrier is a potential bankruptcy candidate. Right before the closing bell came news that S&P is downgrading AMR’s corporate credit rating. …
AMR Corporation (NYSE: AMR), the parent of American Airlines, is already in trouble and many worry that the air carrier is a potential bankruptcy candidate. Right before the closing bell came news that S&P is downgrading AMR’s corporate credit rating. The rating is down to “CCC+” from “B-” today. To make matters worse, the outlook remains Watch Negative as it has underperformed peers and as its liquidity is declining over the next year.
AMR shares just closed down 5.5% at $1.72 on the day with more than 13 million shares trading hands. Unfortunately, this is likely to set a negative tone for Friday morning for AMR traders.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.