America Airlines Inc: modeFinance Credit Report

Tuesday, 29 November 2011

AMERICAN AIRLINES INC

MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

If you want to know more, ASKMORE modeFinance’s credit report.

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Almost every day millions of people around the world are wondering the real creditworthiness of the companies with which they are in business. Every day these questions remain unanswered. modeFinance now aims to answer these questions in a simple, complete and immediate way.

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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

TM

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

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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

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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

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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

Evolutions and trends

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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.

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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

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

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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 %

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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

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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

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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

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