AIG Affirmed

The “AAA” debt and counterparty credit ratings on American International Group Inc. (AIG) were affirmed by Standard & Poor’s (S&P). Concurrently, the “AAA” insurer FSR and counterparty credit ratings on rated insurance subsidiaries of AIG, including Lexington Insurance Co., were also affirmed.

The rating action resulted from the position taken by Lexington on insurance policies issued in connection with the Hollywood Funding No. 5 and No. 6 film finance transactions, which were lowered by S&P on Feb 2. Subsequent to a dispute over policy coverage, S&P conducted a review and later expressed the belief that AIG’s market position would not suffer a negative impact as a result of the disputes. In addition, the “AAA” rating on the Hollywood Funding No. 4 Ltd. transaction was lowered to “BB” on March 30. On April 6, the “CCC-” rating on Hollywood Funding No. 5 Ltd.’s $48.4 million notes was lowered to “D.”

On April 3, various ratings on AIG, its insurance operations and related subsidiaries were affirmed by S&P following AIG’s announcement of plans to acquire American General Corp. The outlook is stable. The following day, A.M. Best also affirmed its “A++” FSRs of AIG’s property/casualty and life/health subsidiaries.

Topics AIG