S&P Downgrades AMR Deeper Into Junk (AMR)

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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.