Fitch Publishes Updated Credit Analysis on AIG

Mon Apr 8, 2013 3:15pm EDT

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(The following statement was released by the rating agency) CHICAGO, April 08 (Fitch) Fitch Ratings today published an updated credit analysis on American International Group (AIG). The report provides a comprehensive analysis of AIG's credit, operating and financial profile. Fitch has an Issuer Default Rating of 'BBB+' on AIG with a Stable Rating Outlook. AIG's net profits over the last four years were materially affected by noncore operations' results and restructuring activity. With the divestiture or runoff of many non-core operations and the December 2012 sale of the remaining U.S. government common stock ownership in AIG, the company is now an independent, publicly owned company with operational focus on global property casualty insurance and domestic life and retirement services. The company has substantially reduced financial leverage since 2009. The pending sale of a large majority stake in aircraft lessor International Lease Finance Corporation (ILFC) will further reduce consolidated leverage and promote the operational focus on insurance operations. Fitch believes that AIG's future earnings and interest coverage improvement will hinge on the performance of the company's core insurance segments, particularly in property casualty operations. Fitch's recent upgrade of the life insurance subsidiaries was largely driven by a return to stronger operating profits and earnings stability. Core U.S. property casualty results in 2012 were negatively affected by Hurricane Sandy losses, which were outsized relative to peers. AIG has approximately $5.9 billion of debt maturing in 2013 and in 2014. Almost two-thirds of this is related to operating debt where the company has assets maturing to fund the repayment. Fitch believes that AIG's holding company resources are adequate to fund near-term debt maturities. The full report 'American International Group' is available at 'www.fitchratings.com'. Contact: James B. Auden, CFA Managing Director +1-312-368-3146 Fitch Ratings, Inc. 70 W. Madison Street Chicago IL 60602 Tana M. Higman Director +1-312-368-3122 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com. Additional information is available at 'www.fitchratings.com'. Applicable Criteria and Related Research American International Group, Inc. (And Insurance Company Subsidiaries) here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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