Standard & Poor’s Ratings Services has announced various ratings actions on several subsidiaries of the American International Group.
“These actions follow AIG’s decision to revise or terminate guarantees,” explained credit analyst Rodney Clark. “The guarantees had provided the basis for the ratings. Therefore, we are withdrawing ratings that are no longer necessary.”
S&P also said it has “revised its CreditWatch implications on the ‘A+’ ratings on American Life Insurance Co.’s (ALICO) subsidiaries, First American Czech Insurance Co. A.S. and AHICO First American-Hungarian Insurance Co., to CreditWatch developing from CreditWatch negative. The action was the result of a change in the guarantor from National Union to ALICO. We also affirmed our ‘ruAAA’ rating on AIG Life Insurance Co. ZAO (Russia) as a result of the ALICO guarantee.
“The business of the following subsidiaries: AIG Czech Republic Pojistovna A.S., AIG Poland Insurance Co. S.A., and AIG Slovakia Insurance Co. A.S., was transferred into newly formed branches of AIG Europe. As a result, the guarantees have been terminated as these subsidiaries no longer exist.” The ratings have therefore been withdrawn.
S&P also noted that “New Hampshire Insurance Co., an AIG affiliate, terminated its guarantee to HSB Engineering Insurance Ltd. (HSB) because the rating is no longer necessary. We are not rendering an opinion on HSB because we believe the company’s operations are not material. We are withdrawing our rating on this subsidiary at the company’s request.
“Further, AIU Insurance Co. Shanghai Province was converted into a wholly owned foreign enterprise (WOFE) and took over the Shanghai branch portfolio. The following branches became branches of the new Shanghai registered WOFE: AIU Insurance Co. Guangzhou China Branch, AIU Insurance Co. Foshan China Branch, and AIU Insurance Co. Shenzhen China Branch. We have withdrawn the ratings on these branches.
In addition, we withdrew the ratings on AIG Capital Corp. and SunAmerica Life Insurance Co. (Separate Accounts) I at the company’s request.”
Source: Standard & Poor’s – www.standardandpoors.com