Citi Downgrades AMR to Sell With $0 PT

Citigroup downgraded AMR

, parent company of American Airlines, to sell with a price target of $0. Citi had a hold rating on the stock prior to a coverage restriction in August. Texas-based AMR filed voluntary Chapter 11 bankruptcy petitions today. American is the second-largest U.S. carrier behind Delta

. “We assign AMR a High risk rating based on a number of quantitative factors that could impede achievement of our target price, including stock price volatility, limited industry earnings stability, debt ratings, and market capitalization. AMR's beta is approximately 2x the market, and its credit ratings are non-investment grade,” Citi said in a note.