S&P: American Financial unchanged

Standard & Poor's said its ratings on American Financial Group Inc. (BBB/stable) and its subsidiary, Great American Financial Resources Inc. (BBB-/stable), will not be affected by American Financial's announcement that it has submitted an unsolicited proposal to Great American's board of directors to acquire the shares of Great American Financial Resources, Inc. common stock that it and its subsidiaries do not already own for $23.50 a share in cash. American Financial and its subsidiaries currently own about 81% of Great American's outstanding shares. The transaction, valued at $215 million presently, is expected to close in the third quarter of 2007.

S&P said the transaction is neutral to the ratings and provides American Financial with a more simplified structure, as Great American will become a private company.

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