S&P keeps American General on watch

Standard & Poor's said that its BBB long-term counterparty credit rating on American General Finance Corp. remains on Creditwatch with negative implications, where it was placed on Oct. 8.

The agency said it remains concerned about potential funding and liquidity challenges that the company faces.

The Creditwatch also reflects its continuing view of higher operating risks because of weakening residential real estate markets and slower consumer spending, S&P said, noting that in its earlier release it stated that its rating on American General no longer incorporates parental support.

The agency, however, said it now believes that American International Group Inc. (A-/watch negative/A-1), its ultimate parent, can provide limited support for American General.

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