Fitch revises American Airline’s Outlook; rates proposed revenue bonds

Fitch Ratings has revised its Outlook for American Airlines (American) to Stable from Negative and affirmed its Long-Term Issuer Default Rating at ‘B-‘. Fitch states that the Outlook revision reflects the company’s strong liquidity position along with rebounding passenger traffic in the US, which together decreases the likelihood of a downgrade into the ‘CCC’ category. Meanwhile, the rollout of multiple effective coronavirus vaccines has increased Fitch’s confidence in a meaningful rebound in air travel in 2021, lowering the likelihood that American will continue to burn cash for a prolonged period. American’s ‘B-‘ rating reflects material risks that remain for the