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.