S&P shifts American Air view to positive

S&P said it revised its outlook for American Airlines Group Inc. to positive from stable and affirmed its B- issuer credit rating.

“American strengthened its credit profile over the past year, and further improvement appears likely in 2023. Strong demand for domestic passenger travel was the catalyst for the much higher earnings and cash flow the company generated in 2022, and we assume this will persist in 2023. American generated an FFO-to-debt ratio of 9% last year, near our upside threshold for the rating of above 10%,” S&P said in a press release.

The agency said it estimates FFO to debt at about 15% this year and expects the company will generate positive free cash flow that it will use for debt reduction.

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