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DUFF & PHELPS LOWERS RATINGS OF AIR CARRIERS' SENIOR SECURED DEBT

 CHICAGO, March 18 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has downgraded the senior secured debt of the two largest U.S. air carriers. The ratings of American Airlines Inc.'s equipment pass-through certificates were lowered to `BBB+' (Triple-B-Plus) from `A-' (Single-A- Minus) and the equipment trust certificates were lowered to `BBB' (Triple-B) from `BBB+'. The ratings of United Air Lines, Inc. equipment pass-through certificates were lowered to `BBB' from `BBB+'. Approximately $2.0 billion of debt securities were affected by these changes.
 These downgrades reflect the continuing deterioration in profitability and cash flow within the airline industry. Excess industry capacity, a weak domestic economy, price cutting, and aggressive debt financed capital spending programs continue to pressure operating results. This poor operating environment is likely to continue over at least the near term, maintaining the pressure on cash flow.
 -0- 3/18/93
 /CONTACT: W. Dudley Heer, CFA of Duff & Phelps Credit Rating Co., 312-368-3123/
 (UAL AMR)


CO: American Airlines; United Airlines ST: Texas, Illinois IN: AIR SU: RTG

WB -- NY073 -- 7595 03/18/93 15:54 EST
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Publication:PR Newswire
Date:Mar 18, 1993
Words:177
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