Fitch affirms American General Finance

Fitch Ratings said it affirmed the A+ long-term issuer default ratings and an F1 short-term issuer default ratings of American General Finance, Inc. and American General Finance Corp., as well as the latter's A+ senior debt rating, AGFC Capital Trust I's A preferred stock rating and CommoLoco, Inc.'s F1 short-term issuer default rating.

The outlook is stable.

The agency said the ratings reflect American General Finance's sound financial profile and conservative growth on a standalone basis as well as the benefit of its ownership by American International Group, Inc. (AA/stable).

Rating concerns center on the limited diversity of American General Finance's loan portfolio with concentrations in real estate products and asset quality deterioration due to the subprime nature of portfolio. Fitch believes American General Finance's profitability will be pressured and will remain below historical levels, based on current mortgage market conditions, exposure to subprime/nonprime consumers and rising delinquencies.

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