Tuesday, 29 November 2011
AMR CORP
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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AMR CORP
Identification number
US751825172
Country
United States of America
ZIP code and city
76155 - FORT WORTH
Address
4333, Amon Carter Boulevard +1 817 963 1234 www.aa.com investor.relations@aa.com
Legal form Account
Consolidated
Incorporation date
1982
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
16,591,829
13,825,486
17,076,965
CC
CC
C
42.00%
42.00%
57.00%
100%
100%
100%
-7.36
-8.29
-9.58
0.86
0.88
0.90
Current Ratio
0.78
0.86
0.63
Quick Ratio
0.71
0.79
0.58
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 (%)
1.14
-4.13
-5.35
-11.94
-42.08
-72.16
Asset turnover
0.88
0.78
0.94
Interest paid weight
2.77
-0.67
-0.57
Gross Profit/Operating revenue
0.19
0.15
0.15
0.39
-1.43
-2.45
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
key askMORETM is a registered mark of modeFinanceTM
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
AMR CORP
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
-7.36
Total asset/Total liabilties
0.86
0.56
2.40
4.74
-1.92
2.77
1.42
1.17
0.92
Current Ratio Quick Ratio
0.78
2.35
1.28
0.88
0.67
0.71
2.02
1.17
0.79
0.59
Solvency ratios
Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
1.14
20.00
6.39
1.05
-19.55
-11.94
23.37
10.40
-7.60
-108.80
Asset turnover
0.88
2.08
1.48
1.36
1.39
Interest paid weight
2.77
0.00
0.17
0.13
-0.10
Gross Profit/Operating revenue
0.19
0.21
0.20
0.12
0.06
0.39
331.80
4.60
0.03
-8.53
Return on equity ROE (%)
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)
10
14
8
11
7
Days Sales Outstanding (DSO)
12
34
33
33
33
Days Payable Outstanding (DPO)
19
12
27
37
48
Cash Conversion Cycle (DIO + DSO - DPO)
3
36
20
9
-6
Numer of analyzed companies
-
70
279
227
145
CC
A
BB
B
CC
(Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 5110 with financial data of year 2009.
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
AMR CORP
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
AMR CORP
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
18,775,634
17,657,915
18,089,396
Fixed assets
13,658,136
13,047,338
13,824,825
697,500
685,825
796,868
11,287,233
10,742,743
11,306,322
1,673,402
1,618,770
1,721,636
5,117,498
4,610,578
4,264,571
Stocks
444,544
386,644
377,237
Debtors
552,313
533,111
582,741
4,120,641
3,690,822
3,304,593
3,364,766
3,053,588
2,232,522
-2,952,403
-2,421,907
-2,108,933
253,705
235,319
204,786
Other shareholders funds
-3,206,107
-2,657,225
-2,313,718
Total liabilities
21,728,037
20,079,822
20,198,329
Non current liabilities
15,157,163
14,715,392
13,465,552
Long term debt
6,924,862
7,346,243
6,470,507
Other non-current liabilities
8,232,301
7,369,150
6,995,045
Current liabilities
6,570,873
5,364,430
6,732,776
Loans
1,409,220
773,289
1,402,602
865,140
738,581
684,056
4,296,513
3,852,560
4,646,119
Total shareh. funds & liab.
18,775,634
17,657,915
18,089,396
NET DEBT (th e)
31/12/2010
31/12/2009
31/12/2008
Short term debts
1,409,220
773,289
1,402,602
Long term debt
6,924,862
7,346,243
6,470,507
Cash & cash equivalent
3,364,766
3,053,588
2,232,522
Net debt
4,969,316
5,065,943
5,640,586
31/12/2010
31/12/2009
31/12/2008
131,717
181,174
275,922
-1,453,375
-753,852
-2,468,206
31/12/2010
31/12/2009
31/12/2008
Days Sales Of Inventory (DIO)
10
10
8
Days Sales Outstanding (DSO)
12
14
12
Days Payable Outstanding (DPO)
19
19
15
3
5
5
Exchange rate USD - EUR
Intangible fixed assets Tangible fixed assets Other fixed assets Current assets
Other current assets Cash & cash equivalent Shareholders funds Capital
Creditors Other current liabilities
Working capital Net Current Assets
Cash Conversion Cycle (DIO + DSO - DPO)
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
AMR CORP
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
-
1,804,371
1,589,615
1,560,682
Operating revenue / turnover
16,591,829
13,825,486
17,076,965
Total operating costs
16,361,325
14,522,417
18,434,298
Costs growth (%)
13
-21
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
1,048,496
69,416
-490,048
817,991
766,347
867,285
Exchange rate USD - EUR Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized
EBITDA Depreciation EBIT
230,504
-696,932
-1,357,333
-609,190
-519,228
-164,547
Financial revenue
19,458
23,601
130,057
Financial expenses
628,648
542,829
294,604
592,726
487,297
553,280
-378,686
-1,216,160
-1,521,880
Financial P/L
Interest paid P/L before tax Extr. and other P/L
-
-
-
Extr. and other revenue
-
-
-
Extr. and other expenses
-
-
-
-
-
-
-26,194
-197,140
0
-352,492
-1,019,020
-1,521,880
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
13,500,974
11,688,182
14,522,534
Gross Profit
3,090,855
2,137,303
2,554,431
Other Operating Expenses
2,860,351
2,834,235
3,911,765
31/12/2010
31/12/2009
31/12/2008
465,499
-252,672
-654,595
-
-
-
31/12/2010
31/12/2009
31/12/2008
78,250
78,900
84,100
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
AMR CORP
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
AMR CORP
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
AMR Corp was formed in 1982 as part of American Airlines reorganization. The company acts a commercial aviation holding company and is based in Fort Worth, Texas in the United States. The company’s principal subsidiary is the American Airlines, Inc. American Airlines offers scheduled jet service to approximately 150 destinations throughout North America, the Caribbean, Latin America, Europe, and Asia. It also operates as a scheduled air freight carrier which provides range of freight and mail services to shippers throughout its system. AMR owns the commuter airlines American Eagle, Executive Air, and American’s other commuter affiliate, the AmericanConnection. Another wholly owned subsidiary of AMR, American Beacon Advisors, Inc., is responsible for the investment and oversight of assets of the company’s employee benefit plans, as well as its short term investments.
History
Formed as part of American Airlines reorganization.
Primary business line
Acts a commercial aviation holding company.
Secondary business line
Not available.
Main activity
Services.
Secondary activity
Not available.
Main products and services
Not available.
Size estimate
Not available.
Strategy, organization and policy
Not available.
Strategic alliances
Not available.
Membership of a network
Not available.
Main brand names
Not available.
Main domestic country
United States of America.
Main foreign countries or regions
Not available.
Main production sites
Not available.
Main distribution sites
Not available.
Main sales representation sites
North America; Caribbean; Latin America; Europe; Asia.
Main customers
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
AMR CORP
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Auditor/Advisor/Bank name
type
address
ERNST & YOUNG LLP
Auditor
-
American Stock Transfer & Trust
Transfer Agent
-
Board name
date of birth
nationality
function
Mr Gerard J. Arpey Mr Alberto Ibarguen Mr Armando M Codina Mr John W Bachmann
1951 -
-
-
Mr Matthew K Rose Mr Michael A Miles Mr Philip J Purcell Mr Ray M Robinson Mr Roger T Staubach
1942
-
-
Mr Stephen M Bennett Mrs Judith Rodin Ms Ann Mclaughlin Korologos
16/11/1941
-
-
Sharehoders (the first twenty shareholders ordered by Direct %)) PRIMECAP MANAGEMENT COMPANY via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US 11.01
Rating:
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
4 28
Information date
2011/06
CAPITAL GROUP COMPANIES, INC., THE via its funds
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 7.57
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
195 3,180 2011/06
AMR CORP
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
I C C CAPITAL MANAGEMENT INC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US -
Direct % Total % Address: Not available
2 17
Information date
US 4.08
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
2011/06
US -
Operating revenue (MIL $) Total Assets (MIL $)
Rating:
-
Rating:
PAR CAPITAL MANAGEMENT INC via its funds Country ISO code NACE Rev. 2, Core code
-
5.63
VANGUARD GROUP, INC. THE via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
Rating: Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
2,018 1,830 9,500 2011/06
CCC 0 5
4.05
Number of Employees Information date
US 3.27
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
8,612 178,459 9,127 2011/06
MARATHON ASSET MANAGEMENT LLP via its funds
Rating:
AA
Country ISO code
Operating revenue (MIL $)
Rating:
BLACKROCK, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/06
BBB
Address: Not available
NACE Rev. 2, Core code Direct % Total % Address: Not available
GB 3.18
Total Assets (MIL $) Number of Employees Information date
APPALOOSA PARTNERS LP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US -
Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
84 2011/06
Rating:
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
3 20
1.49
Information date
US 1.23
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
2011/06
Rating:
STATE STREET CORPORATION via its funds
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
235
-
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
8,953 160,505 28,670 2011/06
AMR CORP
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
CITIGROUP INC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US -
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
0.98
Information date
2011/06
LANE, DOUGLAS C & ASSOCIATES INC via its funds
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US 0.84
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Country ISO code NACE Rev. 2, Core code
NO -
Operating revenue (MIL $) Total Assets (MIL $)
Direct % Total % Address: Not available
0.74
Number of Employees Information date
US 0.67
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
3 22 2011/06
Rating:
GOVERNMENT OF NORWAY via its funds
2010/12
Rating:
JOHNSON FRANK LAGRANGE via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
87,047 1,913,902 260,000
2011/06
Address: Not available
BANK OF NEW YORK MELLON CORPORATION via its funds
Rating:
Country ISO code
Operating revenue (MIL $)
13,848
Total Assets (MIL $) Number of Employees Information date
247,259 48,000 2011/06
NACE Rev. 2, Core code Direct % Total % Address: Not available
US 0.60
Rating:
UBS AG via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
CH -
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
0.60
Information date
US 0.59
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
34,364 1,401,923 65,233 2011/06
Rating:
WATER STREET CAPITAL, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: 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
2 18 2011/06
AMR CORP
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
FMR LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US -
3,591 41,050
0.55
Information date
2011/06
US 0.54
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US -
Operating revenue (MIL $) Total Assets (MIL $)
30,191 807,698
0.53
Number of Employees Information date
62,542 2011/06
US 0.49
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
OHIO, STATE OF via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
Direct % Total % Address: Not available
0 32 2011/06
-
Rating:
HBK MANAGEMENT LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
-
Rating:
MORGAN STANLEY via its funds Country ISO code NACE Rev. 2, Core code
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
0 3 2011/06
Address: Not available
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:
CC
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
5,527 24 2,500 2010/12
US 100.00 100.00
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
AMERICAN AIRLINES, INC Country ISO code NACE Rev. 2, Core code Direct % Total %
Rating:
AMERICAS GROUND SERVICES INC. Country ISO code NACE Rev. 2, Core code Direct % Total %
Rating:
AVION ASSURANCE LTD Country ISO code NACE Rev. 2, Core code Direct % Total %
-
BM 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
2010/12
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2010/12
AMR CORP
Tuesday, 29 November 2011 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
PMA INVESTMENT SUBSIDIARY INC. 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 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
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
Rating:
S C INVESTMENT INC 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
1 1,096 2011/07 -
Rating:
EXECUTIVE AIR LINES, INC
325 12,300 2011/07 -
Rating:
AMR LEASING CORPORATION
18 625 2011/07 -
Rating:
AMR EAGLE INC
0 2011/08 -
Rating:
AMERICAN EAGLE HOLDING LLC
2010/12 -
Rating:
A M R TRAINING GROUP INC
2010/12 -
Rating:
A M R / AMERICAN AIRLINES FOUNDATION Country ISO code NACE Rev. 2, Core code Direct % Total %
-
US 100.00 100.00
2 2011/07 -
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
87 1,509 2011/07
AMR CORP
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.
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
AMR CORP
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.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AMR CORP
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
AMR CORP
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
AMR CORP
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