S&P rates American Airlines loan BB+

S&P said it assigned a BB+ rating and 1 recovery rating to American Airlines Inc.'s $1 billion seven-year term loan B due 2023.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The BB+ ratings and 1 recovery ratings on American Airlines' various other term loans and credit facilities are unchanged. The 1 recovery ratings indicate 90% to 100% expected default recovery.

The BB- ratings and 4 recovery ratings on the senior unsecured debt of American's parent, American Airlines Group Inc., also remain unchanged.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The proceeds of the new loan will be used to refinance the group’s existing $970 million term loan B-1, which was originally issued by US Airways Inc. and is due in May 2019, S&P explained.

The new term loan B will be secured mostly by takeoff and landing slots at Ronald Reagan Washington National Airport and New York's LaGuardia Airport, the agency said.

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