Fitch Ratings has downgraded American Airlines to ‘B-‘ from ‘B’. The rating agency says that the downgrade is driven by a slower than expected rebound in air travel related to the coronavirus pandemic. The likelihood that air traffic will remain subdued for the next several years combined with American’s heavy debt load create significant pressure on credit metrics throughout Fitch’s forecast period. Reduced capacity to raise new capital as many of the company’s previously unencumbered assets have already been pledged for secured financings also contributes to the negative rating action. The Negative Watch reflects the high degree of uncertainty remaining

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