S&P affirms AIG

Standard & Poor's said it affirmed its supported A-/A-1 counterparty credit rating on American International Group Inc. and its A+ counterparty credit and financial strength ratings on AIG's insurance subsidiaries.

The agency also said that it removed all of these ratings from Creditwatch, where they were placed on Nov. 8, with negative implications.

The outlook on all is negative.

According to S&P, the ratings on International Lease Finance Corp. (BBB+/watch developing/A-2) remain on Creditwatch developing pending a planned sale of the company.

"The affirmation primarily reflects its view that the U.S. Treasury and the Federal Reserve will continue their financial support of and ongoing commitment to AIG as the revised recapitalization the company announced improves its capital adequacy and reduces pressure on debt holders," explained S&P credit analyst Kevin Ahern.

"The ratings reflect a combination of the extraordinary external support from the U.S. government in light of AIG's status as a highly systemically important financial institution. We expect this support to be ongoing during AIG's period of stress."

The agency said it also affirmed its A+ insurer financial strength ratings on the following four Asia-Pacific life insurance operations of AIG: American International Assurance Co. Ltd., American International Assurance Co. (Bermuda) Ltd., AIG Edison Life Insurance Co. and American International Assurance Co (Australia) Ltd.

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