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AMR CORPORATION DISAPPOINTED BY MOODY'S DOWNGRADE OF DEBT SECURITIES

 DALLAS/FORT WORTH AIRPORT, April 15 /PRNewswire/ -- AMR Corporation (NYSE: AMR) said today it was disappointed by Moody's Investors Service Inc.'s downgrade of AMR and American Airlines' debt securities, but not surprised.
 "While Moody's action leaves most of AMR and American's debt securities in the investment grade category, it is another indication of the dismal financial condition of the U.S. airline industry," said Michael J. Durham, senior vice president and treasurer of AMR and chief financial officer of American.
 Moody's said it lowered the airline's ratings because of American's "continuing losses and reduced financial flexibility, and the likelihood that the company's fixed charge coverage will be constrained over the intermediate term."
 Moody's noted that AMR is addressing its problems by cutting capacity and reducing service to some unprofitable destinations. But the agency said it "remains cautious" because of ongoing airline industry volatility and the potential for periodic deep fare discounting.
 Durham said American would stay on its current track. "Today's downgrade by Moody's, following last month's downgrading of AMR debt by Standard & Poor's will not affect AMR's plan to shrink the airline and focus more on its non-airline activities," Durham said. "Two years ago, we decided to cut airline capital spending by $8 billion and to infuse more equity into the company. As a result, we have already met virtually all of 1993's financing requirements and anticipate that we could, if necessary, meet our 1994 and 1995 financing requirements with internally generated cash."
 While the downgrade has no immediate impact on AMR's and American's financing plans, "it will make it more difficult and expensive to raise capital if and when the need arises," Durham said.
 -0- 4/15/93
 /CONTACT: Andrea Rader, corporate communications of AMR Corporation, 817-931-0176/
 (AMR)


CO: AMR Corporation ST: Texas IN: AIR SU: RTG

LD -- NY113 -- 6493 04/15/93 17:21 EDT
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Date:Apr 15, 1993
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