(The following statement was released by the rating agency)
CHICAGO, April 08 (Fitch) Fitch Ratings today published an updated credit
analysis on American International Group (AIG). The report provides a
comprehensive analysis of AIG's credit, operating and financial profile.
Fitch has an Issuer Default Rating of 'BBB+' on AIG with a Stable Rating
AIG's net profits over the last four years were materially affected by noncore
operations' results and restructuring activity. With the divestiture or runoff
of many non-core operations and the December 2012 sale of the remaining U.S.
government common stock ownership in AIG, the company is now an independent,
publicly owned company with operational focus on global property casualty
insurance and domestic life and retirement services.
The company has substantially reduced financial leverage since 2009. The pending
sale of a large majority stake in aircraft lessor International Lease Finance
Corporation (ILFC) will further reduce consolidated leverage and promote the
operational focus on insurance operations.
Fitch believes that AIG's future earnings and interest coverage improvement will
hinge on the performance of the company's core insurance segments, particularly
in property casualty operations. Fitch's recent upgrade of the life insurance
subsidiaries was largely driven by a return to stronger operating profits and
earnings stability. Core U.S. property casualty results in 2012 were negatively
affected by Hurricane Sandy losses, which were outsized relative to peers.
AIG has approximately $5.9 billion of debt maturing in 2013 and in 2014. Almost
two-thirds of this is related to operating debt where the company has assets
maturing to fund the repayment. Fitch believes that AIG's holding company
resources are adequate to fund near-term debt maturities.
The full report 'American International Group' is available at
James B. Auden, CFA
Fitch Ratings, Inc.
70 W. Madison Street
Chicago IL 60602
Tana M. Higman
Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email:
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research American International Group, Inc. (And
Insurance Company Subsidiaries)
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