American's credit rating gets a boost DALLAS (AP) =97 Standard & Poor's upgraded the credit rating for American=20 Airlines and parent AMR on Friday, citing cash flow improvements since $1.8= =20 billion in wage concessions were reached with labor unions in April.=20 Standard & Poor's Rating Services boosted the rating from "CCC" to "B-" for= =20 the world's largest carrier. A higher credit rating generally lowers the=20 interest rate that a company must pay to borrow money. Standards & Poor's=20 analyst Philip Baggaley also removed AMR from Credit Watch. Although AMR=20 has $1.45 billion in liquidity, the Fort Worth-based company remains=20 vulnerable to further slumps in the struggling airline industry, he said.=20 The labor concessions plus about $200 million in cost savings from=20 suppliers, private lessors and creditors are expected to improve airline's= =20 operating cost structure, reducing its losses and restoring positive=20 operating cash flow over the next several quarters. The new labor contracts are expected to save $200 million in the second=20 quarter of 2003, $400 million in the third quarter and $450 million by the= =20 fourth quarter and thereafter. Standard & Poor's said the company continues= =20 to face a weak revenue environment and AMR carries a consolidated total of= =20 $22 billion of debt and leases plus $6 billion of unfunded pension and=20 retiree medical obligations, leaving the companies' financial condition=20 improved but still fragile. AMR's financial turnaround depends partly on an expected gradual=20 improvement in airline industry revenues, but a further setback caused by=20 terrorism or other events could place renewed pressure on liquidity and=20 prompt a downgrade, Standard & Poor's said. Shares of AMR rose 13 cents to= =20 close at $9.24 Friday on the New York Stock Exchange. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Mas Site: www.tntisland.com/tntrecords/mas2003/ Site of the Week: http://www.carib-link.net/naparima/naps.html TnT Webdirectory: http://search.co.tt *********************************************************