AMR Retains Investment Grade Status

Apr 12, 2001, 01:00 ET from AMR Corp.

    FORT WORTH, Texas, April 12 /PRNewswire/ -- AMR Corp. (NYSE:   AMR), the
 parent company of American Airlines, issued the following statement today
 regarding the rating of its various debt securities by Moody's Investors
 Service:
     Three days after American Airlines closed its purchase of substantially
 all of the assets of TWA, Moody's Investors Service altered its ratings on
 various of the company's debt securities.  All debt obligations of both
 American Airlines and AMR remain investment grade.  Moody's downgraded
 American Airlines' senior unsecured debt rating to Baa3 from Baa1, and AMR
 Corporation's senior unsecured debt rating to Baa3 from Baa2.
     This action was not unexpected given the $625 million investment in TWA's
 assets and American's assumption of certain TWA aircraft lease obligations.
 Credit rating downgrades often initially result from a large-scale acquisition
 in which incremental debt is raised.
     In recent times, Moody's has conferred lower ratings on AMR Corporation
 debt relative to the debt of American Airlines.  This treatment stems from a
 view that parent company obligations, such as those of AMR, are effectively
 subordinate to claims against assets of the operating subsidiary, in this case
 American Airlines.  The company is currently evaluating mechanisms that would
 provide additional credit support to AMR unsecured obligations and plans to
 make an announcement regarding its intentions in the near term.
     More Room For More Coach Passengers ... Only On American Airlines
     Current AMR Corp. news releases can be accessed via the Internet.  The
 address is http://www.amrcorp.com/corpcomm.htm.
 
 

SOURCE AMR Corp.
    FORT WORTH, Texas, April 12 /PRNewswire/ -- AMR Corp. (NYSE:   AMR), the
 parent company of American Airlines, issued the following statement today
 regarding the rating of its various debt securities by Moody's Investors
 Service:
     Three days after American Airlines closed its purchase of substantially
 all of the assets of TWA, Moody's Investors Service altered its ratings on
 various of the company's debt securities.  All debt obligations of both
 American Airlines and AMR remain investment grade.  Moody's downgraded
 American Airlines' senior unsecured debt rating to Baa3 from Baa1, and AMR
 Corporation's senior unsecured debt rating to Baa3 from Baa2.
     This action was not unexpected given the $625 million investment in TWA's
 assets and American's assumption of certain TWA aircraft lease obligations.
 Credit rating downgrades often initially result from a large-scale acquisition
 in which incremental debt is raised.
     In recent times, Moody's has conferred lower ratings on AMR Corporation
 debt relative to the debt of American Airlines.  This treatment stems from a
 view that parent company obligations, such as those of AMR, are effectively
 subordinate to claims against assets of the operating subsidiary, in this case
 American Airlines.  The company is currently evaluating mechanisms that would
 provide additional credit support to AMR unsecured obligations and plans to
 make an announcement regarding its intentions in the near term.
     More Room For More Coach Passengers ... Only On American Airlines
     Current AMR Corp. news releases can be accessed via the Internet.  The
 address is http://www.amrcorp.com/corpcomm.htm.
 
 SOURCE  AMR Corp.