Amended: Fitch Rts $1.6B Dallas-Ft Worth, TX Airport Rev Bonds 'A+'; Rating Outlook Changed to Negative.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 25, 2003

(This is an amended version on an earlier press release which includes updated issuance details)

Fitch Ratings today assigns the Cities of Dallas and Fort Worth, Texas' $1,600,000,000 series 2003A Dallas-Fort Worth International Airport (DFW) joint revenue improvement bonds (GARBs) (AMT) an 'A+' rating. Pricing for the series 2003A bonds is expected the week of April 28. The series 2003A bonds will be sold through negotiation via a syndicate consisting of J.P. Morgan, Morgan Stanley, RBC Dain Rauscher, M.R. Beal, Salomon Smith Barney, Merrill Lynch, Ramirez Co., Apex Securities, Morgan Keegan, Siebert Brandford Shank, Estrada Hinojosa, Bear Stearns, Lehman Brothers, SWS Securities, A.G. Edwards, Goldman Sachs. At this time, Fitch affirms DFW's 'A+' rating on $2.101 billion outstanding joint revenue improvement bonds prior to issuance of the series 2003A bonds. The Rating Outlook is changed to Negative from Stable, reflecting the increased risk related to the U.S. airline industry and the financial condition of American Airlines. Fitch's senior unsecured debt rating for American, the principal operating subsidiary of AMR Corp., is 'CCC+' and the Rating Outlook is Negative. The 2003 bonds are secured by a senior lien on DFW's gross revenues and portions of passenger facility charge (PFC) revenue. Proceeds of the series 2003 bonds will be used to finance a portion of DFW's $2.6 billion capital plan, fund reserve accounts and pay issuance-related costs.

The 'A+' rating is based on DFW's highly valuable assets, its ranking as the nation's fourth busiest airport in 2001, use of passenger facility charge (PFC) revenue to pay debt service, and DFW's competitive cost structure even under stress case enplanement scenarios. Fitch also considers DFW's experienced and proactive management team a strength of the credit. American Airlines' (American) successful renegotiation of its contracts with its pilots union, mechanics union and flight attendants unions, is beneficial for this credit the current aviation environment. While uncertainties in the U.S. airline industry pose risk to airport credits in general, American's commitment to DFW as its world headquarters should help DFW maintain healthy finances despite increasing debt service requirements. Fitch considers DFW to have among the strongest hub fundamentals among large hub airports. In 2002, American and American Eagle accounted for 63% and 7% of total passengers, respectively, and DFW had a 40% origination and destination (O&D) level.

By 3Q03, the Dallas-Fort Worth International Airport (DFW) has fully committed itself to its' debt-financed 2001-2006 $2.6 billion capital improvement program (CIP), as the 2003 bonds will fund completion of major projects already underway. Airline uncertainties continue during the war in Iraq and the current recession, but American Airlines (American) passed a major short-term hurdle via ratification of new labor agreements with its 3 principal unions on April 16. A relatively low percent of international traffic (8%) is benefical during international conflict, such as the war in Iraq. Escalating debt service hurdles should be met, even under the stress case scenario while maintaining a relatively low cost structure, commensurate with an 'A+' rating. As of March 31, 2003, DFW has $136.8 million in unrestricted cash.

DFW has historically produced solid financial results. DFW prudently issued another downward revised feasibility forecast, its 3rd forecast since beginning the 2001-2006 CIP. Fitch considers this forecast attainable, as the base case forecasts DFW air traffic to return to year 2000 levels in 2010, and stress case expects passengers to dip to 22.5 million in 2005, and reaching 24.8 million by 2009, which is 1991 levels. Under the base case forecast, airline cost per enplaned passenger levels (CPE) are expected to reach $8.26 in 2009, the stress case CPE reaches $10.69, both of which are low for large-hub airport with this amount of debt, which includes an additional $800 million of new bonds in 2003. Beginning in 2006, debt service will be level at $300 million annually through 2035. DFW's aggressive use of PFC revenue to pay revenue bond debt service is a considerable strength, as this is expected to contribute about $82 million in 2006 and slightly increase annually.