Originally Posted by
CaptainSlow
Total debt is somewhere around ~$45B for AAG. DL is ~$34B and UA is ~$39B. That said, AAG seems to be trending in a better direction than the last couple years according to some of the credit rating organizations. Fitch listed AAG as “stable” most recently in March:
https://www.fitchratings.com/researc...ble-03-03-2022
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Stable at B- is not good. This is a Fitch rating of B.
B- is worse than that.
it’s the same creditworthiness as Angola…
I’m not dumping on AA or their management. Nobody anticipated COVID and the government handled it poorly. Nobody anticipated the government would so mismanage the economic recovery to produce today’s inflation (OK, maybe Rand Paul and Larry Summers did.
https://www.politico.com/news/2022/0...22-22-00047233), but don’t be in denial about the fix they are in. They are going to have to refinance almost all that debt they took on when interest rates were low at far higher interest rates and they are already paying $2 Billion a year in debt service even at current rates.
That is not an enviable situation to be in.