S&P puts AIG on watch

Standard & Poor's said it placed its ratings on American International Group Inc. (AA-/A-1+) and subsidiaries on CreditWatch with negative implications following a significant decline in AIG's share price and an increase in credit spreads on the company's debt.

S&P believes that AIG has sufficient capital and liquidity to meet its policy obligations and potential collateral requirements, which are significantly greater than the expected cash losses on the mortgage-related assets. However, the agency said additional market value losses will place some strain on the company's resources.

Given the movement in the share price and credit spreads, S&P now believes AIG's potential access to the capital market may be more restricted in the short term.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.