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Fitch upgrades AIG
Fitch Ratings said it upgraded American International Group, Inc.'s issuer default rating to BBB+ and affirmed its senior unsecured debt at BBB.
The move follows the U.S. Department of Treasury's sale of about $18 billion common stock, which reduces government ownership of AIG to about 21.5% from 53%, according to the agency.
Fitch said it took several rating actions to remove the impact of government ownership from AIG's ratings, and reflect significant progress in deleveraging the organization.
The ratings on AIG's subordinated debt and junior subordinated debentures are upgraded to BBB- and BB+, respectively.
The outlook is stable.
The upgrade considers AIG's success in restructuring and deleveraging efforts over the last three years that have strongly improved the organization's stand alone rating profile, Fitch said.
The ratings reflect the benefits of the AIG organization's strong competitive positions in life and non-life insurance, partially offset by the comparatively poor recent operating results of the company's core insurance operations, the agency noted.
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