Yeah it is a strange event, but all airline stocks are up at the moment. The "rating" dropped to the junk status, well a lower junk status then it was. Just because the stock price is up doesn't mean that it is a good investment, long term from a credit side of things. I am not a financial wizard, but I am sure there is some metric that can explain why the rating continues to suffer while the stock goes up. I have also misspoke a tad, in that rating should be "credit".

My assumption is that they don't feel very confident that AAG will be able to make enough money to pay their debts, hence the credit rating part of it. As I mentioned earlier, if it drops again, it will officially be in the "can't pay its debt" category.

Here is the article to read for yourself if you would like.
Market Watch