Tuesday, 29 November 2011
AMERICAN AIRLINES INC
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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AMERICAN AIRLINES INC
Identification number
US131502798
Country
United States of America
ZIP code and city
76155 - FORT WORTH
Address
4333, Amon Carter Boulevard +1 817 963 1234 www.aa.com
Legal form Account
Consolidated
Incorporation date
1930
NACE 2 Sector
5110 - Passenger air transport
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ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.
ASKMORE
Company name
Listed Status
Active
MORE Credit limit
Not eligible for credit on the base of the available informations
plans 2 types of reports:
Turnover (th e) Rating Basic
TM
ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.
31/12/2009
31/12/2008
16,576,861
13,812,297
17,026,666
CC
CC
C
42.00%
42.00%
57.00%
100%
100%
100%
-4.54
-4.91
-5.59
0.78
0.80
0.82
Current Ratio
0.60
0.64
0.52
Quick Ratio
0.55
0.59
0.48
Probability of default
Plus
31/12/2010
Confidence Level
TM
Solvency ratios Leverage ratio Total asset/Total liabilties Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
0.54
-5.30
-8.86
-7.40
-25.08
-51.60
Asset turnover
0.99
0.87
1.05
Interest paid weight
5.17
-0.44
-0.27
Gross Profit/Operating revenue
0.26
0.23
0.23
0.24
-2.15
-3.83
Return on equity ROE (%)
Interest Coverage ratios EBIT interest coverage ratio
Analysis and trend of financial strength
modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
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MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sector Analysis Company
Healthy
Balanced
Vulnerable
Risky
Leverage ratio
-4.54
Total asset/Total liabilties
0.78
0.56
2.40
4.74
-1.92
2.77
1.42
1.17
0.92
Current Ratio Quick Ratio
0.60
2.35
1.28
0.88
0.67
0.55
2.02
1.17
0.79
0.59
Solvency ratios
Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
0.54
20.00
6.39
1.05
-19.55
Return on equity ROE (%)
-7.40
23.37
10.40
-7.60
-108.80
Asset turnover
0.99
2.08
1.48
1.36
1.39
Interest paid weight
5.17
0.00
0.17
0.13
-0.10
Gross Profit/Operating revenue
0.26
0.21
0.20
0.12
0.06
0.24
331.80
4.60
0.03
-8.53
Days Sales Of Inventory (DIO)
9
14
8
11
7
Days Sales Outstanding (DSO)
12
34
33
33
33
Days Payable Outstanding (DPO)
66
12
27
37
48
Cash Conversion Cycle (DIO + DSO - DPO)
-45
36
20
9
-6
-
70
279
227
145
CC
A
BB
B
CC
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days)
Numer of analyzed companies (Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 5110 with financial data of year 2009.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
31/12/2010
31/12/2009
31/12/2008
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.74839
0.69416
0.71855
Total assets
16,780,424
15,940,576
16,180,219
Fixed assets
11,733,275
11,391,084
12,032,053
688,520
674,719
783,215
Tangible fixed assets
9,151,325
8,715,810
9,106,852
Other fixed assets
1,893,429
2,000,555
2,141,986
5,047,149
4,549,492
4,148,166
Stocks
405,628
359,572
345,621
Debtors
538,093
516,451
572,681
4,103,428
3,673,468
3,229,864
3,358,031
3,047,341
2,226,056
-4,741,806
-4,080,243
-3,524,468
0
0
0
Other shareholders funds
-4,741,806
-4,080,243
-3,524,468
Total liabilities
21,522,229
20,020,819
19,704,687
Non current liabilities
13,129,772
12,867,552
11,749,664
Long term debt
4,933,394
5,542,134
4,802,762
Other non-current liabilities
8,196,379
7,325,418
6,946,903
Current liabilities
8,392,457
7,153,268
7,955,023
Loans
1,178,716
611,551
1,014,587
Creditors
3,014,519
2,773,843
2,384,136
Other current liabilities
4,199,222
3,767,873
4,556,300
Total shareh. funds & liab.
16,780,424
15,940,576
16,180,219
NET DEBT (th e)
31/12/2010
31/12/2009
31/12/2008
Short term debts
1,178,716
611,551
1,014,587
Long term debt
4,933,394
5,542,134
4,802,762
Cash & cash equivalent
3,358,031
3,047,341
2,226,056
Net debt
2,754,079
3,106,344
3,591,293
Exchange rate USD - EUR
Intangible fixed assets
Current assets
Other current assets Cash & cash equivalent Shareholders funds Capital
31/12/2010
31/12/2009
31/12/2008
Working capital
-2,070,798
-1,897,820
-1,465,834
Net Current Assets
-3,345,308
-2,603,775
-3,806,857
31/12/2010
31/12/2009
31/12/2008
Days Sales Of Inventory (DIO)
9
10
7
Days Sales Outstanding (DSO)
12
14
12
Days Payable Outstanding (DPO) Cash Conversion Cycle (DIO + DSO - DPO)
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
66
73
51
-45
-49
-32
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
31/12/2010
31/12/2009
31/12/2008
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.74839
0.69416
0.71855
14,787,458
12,235,871
15,516,283
20.9
-21.1
-
1,789,403
1,576,426
1,510,384
Operating revenue / turnover
16,576,861
13,812,297
17,026,666
Total operating costs
16,463,854
14,619,599
18,502,560
Costs growth (%)
13
-21
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
EBITDA
812,753
-145,078
-741,539
Depreciation
699,746
662,224
734,354
Exchange rate USD - EUR Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized
EBIT Financial P/L Financial revenue Financial expenses Interest paid P/L before tax Extr. and other P/L
113,007
-807,302
-1,475,894
-490,196
-412,328
-342,746
8,981
13,883
86,226
499,177
426,211
428,972
467,744
375,538
385,141
-377,189
-1,219,630
-1,818,640
-
-
-
Extr. and other revenue
-
-
-
Extr. and other expenses
-
-
-
-
-
-
-26,194
-196,446
0
-350,995
-1,023,185
-1,818,640
31/12/2010
31/12/2009
31/12/2008
P/L before tax + Extr. and other P/L Taxation P/L for period
Costs of Good Sold
12,240,684
10,653,197
13,184,601
Gross Profit
4,336,178
3,159,100
3,842,066
Other Operating Expenses
4,223,171
3,966,402
5,317,959
31/12/2010
31/12/2009
31/12/2008
348,750
-360,961
-1,084,286
-
-
-
31/12/2010
31/12/2009
31/12/2008
65,525
66,500
70,900
Cash flow Added value
Number of employees
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
It is an American airline company and a principal subsidiary of AMR Corporation, a commercial aviation business and airline holding company. The company is the largest airline in the world in terms of total passengers - miles transported and fleet size. It was founded in 1930 as American Airways. The US - based company has its corporate headquarters located in Fort Worth, Texas. The company operates flights throughout the United States as well as in Canada, Latin America, the Caribbean, Western Europe, Japan, China and India. Its hubs include: Dallas - Fort International Airport; O’Hare International Airport; Miami International Airport; Lambert - St. Louis International Airport; and Luis Moñuz Marin International Airport. Also in other major airports such as: Boston; Los Angeles; Raleigh’Durham and New York’s Laguardia and John F. Kennedy International Airports. It is the founding member of the Oneworld, a worldwide airline alliance. Its partner airline, American Eagle Airlines, is a regional airline based in Texas and wholly owned by AMR Corporation. The company has established the AAdvantage frequent flyer program to develop passenger’s loyalty by offering awards to travelers. It has built marketing relationships with other airline and rail companies, such as Aer Lingus, Air Pacific, Air Sahara, Air Tahiti Nui, Alaska Airlines, British Airways, Cathay Pacific, China Eastern Airlines, LAN Airlines, Mal v Hungarian Airlines, Mexicana, Qantas Airways, Royal Jordanian, SN Brussels Airlines, SNCF French Rail, TAN, Turkish Airlines and Vietnam Airlines.
History
Founded in 1930 as American Airways.
Primary business line
Operates as an American airline company.
Secondary business line
Not available.
Main activity
Services.
Secondary activity
Not available.
Main products and services
Operates flights.
Size estimate
Largest airline in the world in terms of total passengers - miles transported and fleet size.
Strategy, organization and policy
Not available.
Strategic alliances
American Eagle Airlines; Aer Lingus; Air Pacific; Air Sahara; Air Tahiti Nui; Alaska Airlines; British Airways; Cathay Pacific; China Eastern Airlines; LAN Airlines; Mal v Hungarian Airlines; Mexicana; Qantas Airways; Royal Jordanian; SN Brussels Airlines; SNCF French Rail; TAN; Turkish Airlines; Vietnam Airlines.
Membership of a network
Oneworld.
Main brand names
Not available.
Main domestic country
United States of America.
Main foreign countries or regions
Canada; Latin America; Caribbean; Western Europe; Japan; China; India.
Main production sites
Not available.
Main distribution sites
Not available.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Main sales representation sites
Not available.
Main customers
Not available.
Auditor/Advisor/Bank name
type
address
ERNST & YOUNG LLP
Auditor
-
Board Not available.
Sharehoders (the first twenty shareholders ordered by Direct %)) Rating:
AMR CORP Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US 100.00 100.00
B
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
22,170 25,088 78,250 2010/12
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:
AA 2002 CLASS C CERTIFICATE CORPORATION Country ISO code NACE Rev. 2, Core code Direct % Total %
US 100.00 100.00
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2010/12
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
AA 2002 CLASS D CERTIFICATE CORPORATION Country ISO code NACE Rev. 2, Core code Direct % Total %
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
AA 2003 - 1 CLASS C CERTIFICATE CORPORATION Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
2010/12 -
Rating:
AMERICAN AIRLINES IP LICENSING HOLDING LLC
2010/12 -
Rating:
ADMIRALS CLUB INC
2010/12 -
Rating:
AA REAL ESTATE HOLDING LP
2010/12 -
Rating:
AA REAL ESTATE HOLDING GP LLC
2010/12 -
Rating:
AA 2005 - 1 CLASS C CERTIFICATE CORPORATION
2010/12 -
Rating:
AA 2004 - 1 CLASS B NOTE CORPORATION
2010/12 -
Rating:
AA 2003 - 1 CLASS D CERTIFICATE CORPORATION Country ISO code NACE Rev. 2, Core code Direct % Total %
-
US 100.00 100.00
2010/12 -
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2010/12
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
AMERICAN AIRLINES MARKETING SERVICES LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
US 100.00 100.00
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
AMERICAN AIRLINES REALITY (NYC) HOLDINGS INC
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total %
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
MX 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
Country ISO code NACE Rev. 2, Core code Direct % Total %
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0 3 2011/02 -
Rating:
AMERICAN AIRLINES FUEL CORPORATION
6 50 2011/08 -
Rating:
AMERICAN AIRLINES CREW
2010/12 -
Rating:
AMERICAN AIRLINES AUSTRALIAN TOURS, INC.
2010/12 -
Rating:
AAV TOURS LLC
2010/12 -
Rating:
AMERICAN AIR LINES DE MEXICO, S.A. DE C.V.
2010/12 -
Rating:
AMERICAN AVIATION SUPPLY LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
-
Rating:
AMERICAN AIRLINES VACATIONS LLC
2010/12
0 2 2011/06 -
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
1 5 2011/06
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
AMR VENTURES III, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO -
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
0 4 2011/07
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
ASKMORE rating guide General vision
A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.
CC
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
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The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
Return on Investement(ROI)
This measures the profitability of company investments without regard to the way the investment is financed.
Return on Equity(ROE)
This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.
Profit margin
This indicates the profitability of sales.
Interest Paid coverage
This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.
Profitability and economic ratios
Interest coverage ratio
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit
MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
P Available Information P Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AMERICAN AIRLINES INC
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Notes and disclaimer NOTES
The present analysis was based on the company available financial statements as provided by Bureau Van Dijk Electronic Publishing - ORBIS database (lack of both Notes to financial statements and Report on operations).
DISCLAIMER
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Contacts Company
modeFinance
Products Where
MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com +39 040 3755337
Info web Phone
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741