Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
30 Sep 2010
New York, September 30, 2010 -- Moody's Investors Service has affirmed the long-term ratings
of American International Group, Inc. (NYSE: AIG --
long-term issuer rating of A3) following the announcement of a
plan for AIG to repay the U.S. government. Also affirmed
were the Aa3 insurance financial strength (IFS) ratings of Chartis U.S.
and the A1 IFS ratings of SunAmerica Financial Group (SFG). The
rating outlook for these entities remains negative, reflecting the
risk that the government would conclude its ownership and support of AIG
before the company achieves a full recovery of its core operations and
an exit from or de-risking of noncore businesses.
The Prime-1 short-term ratings of AIG and of certain guaranteed
subsidiaries (see list below) have been placed on review for possible
downgrade in light of the proposed elimination of government funding commitments,
namely the repayment and termination of the senior secured credit facility
provided by the Federal Reserve Bank of New York (FRBNY) and the drawdown
of most or all of the Series F preferred stock commitment provided by
the U.S. Treasury. Upon the elimination of these
commitments, the short-term ratings would likely be downgraded
to Prime-2, which is the typical short-term rating
for corporate issuers that carry A3 long-term ratings.
The main elements of AIG's plan are: (i) repayment of the
entire FRBNY credit facility through initial proceeds from divestitures
and other resources, most importantly the proposed initial public
offering of AIA Group Limited (AIA) and the pending sale of American Life
Insurance Company (ALICO), (ii) allocation of most of the available
amount of the Treasury's Series F preferred stock commitment to
the purchase of AIA and ALICO preferred interests now held by the FRBNY,
such that these interests would be held by Treasury and redeemed over
time, mainly through follow-on proceeds from AIA and ALICO,
and (iii) converting the Treasury's Series C, E and outstanding
F preferred interests to AIG common stock to be sold on the open market
over time. The overall plan provides a clear path to repay the
FRBNY and to return AIG ownership to the public equity markets.
"The proposed repayment plan signals AIG's progress in stabilizing
its core insurance operations and exiting noncore businesses,"
said Bruce Ballentine, Moody's lead analyst for AIG.
"It also points the way toward a sustainable capital structure."
On the other hand, the plan hastens the end of explicit government
support for AIG, which has been an important consideration in the
company's ratings. While the announced plan would involve
the government retaining significant ownership of AIG, at least
in the near term, Moody's believes that the ownership stake
and implicit support will decline over the next couple of years.
Therefore, the ratings of AIG and its subsidiaries will increasingly
depend on their stand-alone credit profiles, raising the
risk of downgrades if the credit metrics do not improve as expected.
"The current ratings also reflect our expectation that AIG will
maintain sufficient capital and liquidity to withstand severe stresses
in the insurance and financial markets following the removal of government
funding facilities," said Mr. Ballentine.
Moody's noted that the IFS ratings of Chartis U.S.
and SFG incorporate one notch of rating uplift versus their respective
intrinsic credit profiles, based on government support and an expectation
that the intrinsic profiles will continue to improve over the next 6-12
months. Any shortfall in this regard could result in rating downgrades.
A downgrade of the parent company and its guaranteed subsidiaries could
be prompted by weakness in the core operations or by the removal of government
support before the noncore businesses are divested or reduced to the point
that they no longer pose material risk to the group.
Moody's cited the following factors that could lead to a stable
rating outlook for AIG: (i) improvement in the intrinsic credit
profiles of Chartis and SFG, (ii) exiting or substantially de-risking
noncore businesses, (iii) maintenance of robust liquidity within
the major operations and at the parent company, and (iv) a stand-alone
capital structure that is consistent with the current ratings (e.g.,
adjusted financial leverage in the range of 20%-30%
with pretax interest coverage in mid-to-high single digits).
The rating agency cited the following factors that could lead to rating
downgrades: (i) failure to improve certain credit metrics of the
core insurance operations, such as profitability, reserve
adequacy at Chartis and investment performance at SFG, (ii) retention
of noncore business risks that could strain the capital and/or liquidity
of the group, or (iii) a stand-alone capital structure that
is indicative of lower ratings.
AIG, based in New York City, is a leading international insurance
organization with operations in more than 130 countries and jurisdictions.
AIG shareholders' equity was $75 billion as of June 30, 2010.
The following ratings have been affirmed with a negative outlook:
American International Group, Inc. -- long-term
issuer rating at A3, senior unsecured debt at A3, subordinated
debt at Ba2;
Chartis U.S. -- AIU Insurance Company; American
Home Assurance Company; Chartis Property Casualty Company; Chartis
Specialty Insurance Company; Commerce and Industry Insurance Company;
National Union Fire Insurance Company of Pittsburgh, Pennsylvania;
New Hampshire Insurance Company; The Insurance Company of the State
of Pennsylvania -- insurance financial strength at Aa3;
SunAmerica Financial Group -- American General Life and Accident
Insurance Company, American General Life Insurance Company,
American General Life Insurance Company of Delaware, American International
Life Assurance Company of New York, First SunAmerica Life Insurance
Company, SunAmerica Annuity and Life Assurance Company, SunAmerica
Life Insurance Company, The United States Life Insurance Company
in the City of New York, The Variable Annuity Life Insurance Company,
Western National Life Insurance Company -- insurance financial strength
SunAmerica Financial Group (short-term ratings) -- First SunAmerica
Life Insurance Company, SunAmerica Annuity and Life Assurance Company,
SunAmerica Life Insurance Company -- short-term insurance
financial strength at Prime-1;
SunAmerica Financial Group (funding agreement-backed note programs)
-- AIG SunAmerica Global Financing Trusts, ASIF I & II,
ASIF III (Jersey) Limited, ASIF Global Financing Trusts --
senior secured debt at A1.
The following ratings have been placed on review for possible downgrade:
American International Group, Inc. -- short-term
issuer rating at Prime-1;
AIG Financial Products Corp. -- backed short-term debt
AIG Funding, Inc. -- backed short-term debt at
AIG Liquidity Corp. -- backed short-term debt at Prime-1;
AIG Matched Funding Corp. -- backed short-term debt
Moody's insurance financial strength ratings are opinions of the ability
of insurance companies to punctually pay senior policyholder claims and
obligations. For more information, please visit our website
The principal methodologies used in rating AIG and its subsidiaries were
Moody's Global Rating Methodology for Property and Casualty Insurers and
Moody's Global Rating Methodology for Life Insurers, both published
in May 2010. Other methodologies and factors that may have been
considered in the process of rating these issuers can also be found on
Please see ratings tab on the AIG page on Moodys.com for the last
rating action and the rating history.
Please see the Credit Policy page on Moodys.com for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service
MD - Insurance
Financial Institutions Group
Moody's Investors Service
Moody's Investors Service
Moody's affirms AIG's long-term ratings and maintains negative outlook
250 Greenwich Street
New York, NY 10007
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.