Moody's rates AIG notes A3

Moody's Investors Service said it assigned an A3 rating to $2 billion of senior unsecured notes being issued by American International Group, Inc.

AIG is issuing $500 million of three-year notes and $1.5 billion of 10-year notes off its well-known seasoned issuer shelf registration.

The proceeds will be used for general corporate purposes.

The outlook for AIG and its core insurance operations remains negative.

The current ratings of AIG and its core insurance businesses incorporate the benefits of government ownership and support, Moody's said.

The government support also offsets the downward rating pressure from noncore businesses with weaker credit profiles, the agency said.

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