Moody's lowers American General

Moody's Investors Service said it downgraded the corporate family and senior unsecured ratings of American General Finance Corp. to B3 from B2, after American International Group, Inc. announced that it will sell 80% of AGFC and its immediate parent, American General Finance Inc., to funds and affiliates of Fortress Investment Group LLC.

The outlook is developing.

The downgrade reflects the view that the pending sale of the firm results in a lower expectation of support from AIG, according to the agency.

AGFC's B3 corporate family rating reflects its established position as a national branch-based consumer lender and its adequate capital position, offset by challenges associated with its funding constraints and weak operating performance, the agency said.

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