American International Group Inc. has made tangible progress on its restructuring plan and will likely be able to repay the government’s loan and much of its preferred equity stake, Moody’s Investors Service said on Monday.
The restructuring plan still relies heavily on government support, but if AIG’s operations and global financial markets continue to stabilize, the company can likely generate enough value to repay the government, Moody’s said in a statement.
AIG, the giant insurer bailed out by the U.S. government, posted its second straight quarterly profit last week, helped by a recovery in the value of its investments, though its underlying business remained weak.
The quarterly results “show continued stabilization of the core insurance operations despite challenging market conditions,” Moody’s said.
With the government now likely to recoup its investment, it has incentive to continue supporting AIG and its various creditors, Moody’s said. The agency affirmed AIG’s long-term rating of A3, the seventh-highest investment grade, with a negative outlook.
(Reporting by Dena Aubin; editing by W Simon and J Benkoe)
Topics AIG
Was this article valuable?
Here are more articles you may enjoy.
DeSantis Plan to Cut Florida Property Taxes Heads to Ballot—With Schools Removed 
South Carolina Jury Finds Store Owner Not Guilty of Murder in Shooting of Teen 
Renewals for Most Commercial Lines Decrease in May, Says Ivans 
Trump Scraps Ocean Sensors Providing Crucial Data on Climate, Flooding 
