Fitch: AIG still on watch

Fitch Ratings said American International Group, Inc.'s issuer default rating, along with all holding company ratings and subsidiary debt ratings, remain on Rating Watch negative following fourth-quarter financial results. A

Ratings were placed on watch on Feb. 11 the company said its independent auditor noted a material weakness in internal controls related to the valuation of AIG Financial Products Corp.'s super senior credit derivative portfolio.

The fourth-quarter results included a large unrealized market valuation loss on the credit derivative portfolio compared with previous periods, according to Fitch. The losses are concentrated in collateralized debt obligations backed by structured finance collateral, mainly subprime U.S. residential mortgage-backed securities.

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