AIG’s S&P AA+ Rating Affirmed
Following AIG's successful raising of $17 billion in capital, Standard & Poor's Corp. has affirmed its AA+ counter-party credit and financial strength ratings on American International Group Inc.'s core operating subsidiaries.
The outlook on the ratings is negative, S&P said.
In addition, the ratings agency affirmed the New York-based insurer's AA- counter-party credit and senior debt ratings.
S&P analyst Rodney Clark said in a statement: "These actions follow the settlement of most of AIG's recently announced capital plan. To date, AIG has raised about $17 billion of a total $20 billion planned through the issuance of new common shares, equity units, and junior subordinated debentures."
New York-based S&P said the total issuance replaces essentially all of the capital lost in the past two quarters because of market valuation losses and "other-than-temporary" impairments on mortgage-related securities, and restores the firm to a very strong consolidated capital position.
For the first quarter, AIG reported a $7.81 billion loss, which reflected a $9.11 billion pretax charge for a net unrealized market valuation loss related to AIG Financial Products Corp.'s super senior credit default swap portfolio.
Published on May 22, 2008
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