Standard & Poor’s Ratings Services has assigned its ‘A’ junior subordinated debt ratings to American International Group Inc.’s €750 million ($1.163 billion) of Series A-7 and £900 million ($1.752 billion) Series A-8 junior subordinated debentures.
S&P also placed the ratings on its CreditWatch list with negative implications, “because all other AIG ratings are on CreditWatch.” S&P took this action on May 8 following the company’s announcement of a $7.8 billion net loss (See IJ web site – http://www.insurancejournal.com/news/national/2008/05/09/89873.htm). It will extend through the completion of the company’s capital-raising plan.
“The junior subordinated notes, combined with the previously offered common equity and equity units, would bring the total capital raised to about $20 billion, which is in line with our expectations for maintaining the current ratings,” noted S&P credit analyst Rodney A. Clark. “Therefore, upon completion of these offerings, we will likely remove the ratings from CreditWatch, affirm them, and assign a negative outlook.”
Source: Standard & Poor’s – www.standardandpoors.com
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