Moody's may downgrade American General

Moody's Investors Service said it placed American General Finance Corp.'s A1 long-term senior unsecured debt rating on review for possible downgrade in conjunction with the review for possible downgrade of American General's ultimate parent, American International Group, Inc.

American General's ratings benefit from the implicit support of AIG. Though Moody's believes that AIG's willingness to provide support would remain unchanged, a lower-rated AIG may have less capacity and flexibility to provide further capital injections should American General come under stress. As a result, the rating outcome of the review will be contingent upon AIG's ultimate rating, the agency said.

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