Fitch rates AIG notes BBB

Fitch Ratings said it assigned a rating of BBB to American International Group, Inc.'s (AIG) $1 billion issuance of 3.375% senior notes due 2020.

Fitch also said it affirmed the company's issuer default rating of BBB+ and BBB ratings on various senior unsecured note issues, its $1.5 billion of 4.875% senior unsecured notes due June 2022, $1.2 billion of 4.25% senior unsecured notes due Sept. 15, 2014, $800 million of 4.875% senior unsecured notes due Sept. 15, 2016, €420.975 million of 6.797% senior unsecured notes due Nov. 15, 2017, £323.465 million of 6.765% senior unsecured notes due Nov. 15, 2017, £338.757 million of 6.765% senior unsecured notes due Nov. 15, 2017 and $256.16 million of 6.82% senior unsecured notes due Nov. 15, 2037.

Fitch also affirmed the BBB- rating on its $250 million of 2.375% subordinated notes due Aug. 24, 2015, BB+ rating on its €750 million of 8% series A-7 junior subordinated debentures due May 22, 2038, BB+ on its $4 billion of 8.175% series A-6 junior subordinated debentures due May 15, 2058, BB+ on its £309.85 million of 5.75% series A-2 junior subordinated debentures due March 15, 2067, BB+ on its €409.05 million of 4.875% series A-3 junior subordinated debentures due March 15, 2067, BB+ on its £900 million of 8.625% series A-8 junior subordinated debentures due May 22, 2068 and BB+ rating on its $687.581 million of 6.25% series A-1 junior subordinated debentures due March 15, 2087.

The agency also affirmed AIG International, Inc.'s long-term issuer default rating at BBB+ and the BBB rating on its $175 million of 5.6% senior unsecured notes due July 31, 2097.

AIG Life Holdings, Inc.'s long-term issuer default rating also was affirmed at BBB+, along with the BBB rating on its $150 million of 7.5% senior unsecured notes due July 15, 2025, BBB rating on its $150 million of 6.625% senior unsecured notes due Feb. 15, 2029, BB+ rating on its $300 million of 8.5% junior subordinated debentures due July 1, 2030, BB+ rating on its $500 million of 7.57% junior subordinated debentures due Dec. 1, 2045 and BB+ rating on its $500 million of 8.125% junior subordinated debentures due March 15, 2046.

The proceeds from the new issue will be used for general corporate purposes, including the retirement of debt, Fitch said.

The new issuance will increase the group's pro forma financial leverage ratio modestly to about 20% from 19% as of June 30, the agency said.

The ratings reflect the success in restructuring and deleveraging efforts over the last four years, Fitch said.

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