S&P Global Ratings and Fitch Ratings downgraded American Airlines Group Inc. and subsidiary American Airlines Inc. primarily due to the sharp decline in demand as a result of the outbreak of the new coronavirus pandemic.

S&P said March 21 that it downgraded American Airlines Group and American Airlines to B from BB-. All of the rating agency's ratings on the companies remain on CreditWatch, where it placed them with negative implications on March 13. At the same time, the agency changed its recovery rating on American Airlines Group's unsecured debt to 4 from 3.

S&P said it expect the group's credit metrics to weaken sharply in 2020 due to the effects of the coronavirus pandemic. It also revised its assessment of the group's liquidity to less than adequate from adequate due to its expectation for sharply lower cash generation over the next 12 months.

Meanwhile, Fitch lowered its long-term issuer default rating on the companies to B+ from BB- and revised its outlook to negative from stable.

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