Moody's confirms American General Finance

Moody's Investors Service said it confirmed the long-term senior unsecured ratings of American General Finance Corp. at A1, and affirmed its Prime-1 commercial paper rating, along with the Prime-1 commercial paper ratings of its direct parent, American General Finance, Inc. and commercial paper program of Commo LoCo, Inc.

The outlook is negative.

The action comes after the downgrade of the company's ultimate parent, American International Group, Inc. to Aa3 from Aa2 for senior unsecured debt.

Though Moody's said it 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.

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