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“American Airlines credit downgraded to B- at S&P, the lowest rating among its airline peers”

“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….”

https://www.marketwatch.com/story/american-airlines-credit-downgraded-to-b–at-sp-the-lowest-rating-among-its-airline-peers-2020-06-03

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.

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