The X-ray spectrum of the late-type M-dwarf binary AT Mic (dM4.5e+dM4.5e) is observed in the wavelength range 1 - 40 Angstrom by means of rgs and epic-mos on board XMM-Newton. During the exposure a flare occured. We have performed a 3-temperature fit and a DEM-modeling to the flaring and quiescent part of the spectrum. We report the coronal temperature distribution, emission measures, and abundances of the flaring and quiescent state of this bright X-ray source. The temperature range stretches from about 1 to 60 MK. The total volume emission measure in this temperature interval is ~12.2*10^51 cm^-3 for the quiescent state and ~19.5*10^51 cm^-3 for the flare state. This difference is due to the contribution of the hot temperature component. The high-resolution spectrum of AT Mic, obtained by rgs, is dominated by the H- and He-like transitions of C, N, O, and Ne and by Fe XVII lines, produced by the plasma with temperatures from 1 to 10 MK. The epic-mos spectrum below 10 Angstrom shows H- and He-like Ne, Si and the iron K-shell transitions. They are produced by the hot component (30 MK). The iron K-shell is more prominent in the flare state. The abundance pattern in the quiescent state of AT Mic shows the depletion of low-FIP elements relative to high-FIP elements, indicating the presence of an I(nverse)FIP effect in this active star. In the flare state, however, some flattening of this IFIP effect is present.