“American Airlines credit downgraded to B- at S&P, the lowest rating among its airline peers”
June 10, 2020
“Shares of American Airlines Group Inc. AAL, -9.81% rallied 6.2% in afternoon trading, even as the air carrier’s credit rating was cut to a peer-group low of B- from B at S&P Global Ratings. The credit rating agency said the outlook on the rating, which is now six notches deep into speculative grade, or “junk” territory, remains negative. S&P said it’s also maintaining its assessment of liquidity at “less than adequate,” given the expectation of a “substantially negative level of cash generation” over the next 12 months….”
The reason it rallied is because they are going to go from almost no business due to the virus to returning back to normal. It’s a good time to capitalize.