S&P rates American Airlines loan BB-

Standard & Poor’s said it assigned a BB- rating and 1 recovery rating to American Airlines Inc.’s new $400 million senior secured revolving credit facility due 2019 and $750 million term loan B due 2021.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The BB- rating and 1 recovery rating on the upsized-and-extended $1.4 billion revolving credit facility due 2019 are unchanged.

Also unchanged are the B- rating and 5 recovery rating on the senior unsecured debt of parent American Airlines Group Inc. and affiliate US Airways Group Inc.

The new revolving credit facility and term loan B are secured by collateral that formerly secured American’s $1 billion 7.5% notes, recently redeemed, the agency said.

American is upsizing the existing $1 billion revolving credit facility to $1.4 billion and extending maturity to 2019. That facility is secured by American’s Latin American routes and related gates and slots, the agency said.

American has the largest market share among U.S. airlines serving Latin America, particularly on routes to South America, S&P said.

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