Fitch Assigns 'AA' Rating to AIG Senior Notes; Outlook Stable.

CHICAGO -- Fitch Ratings has assigned an 'AA' rating to the following American International Group, Inc.'s (AIG) senior note issuances:

--$750 million 5.60%, due October 18, 2016;

--$600 million 5.375%, due October 18, 2011;

--$400 million Floating rate, due October 18, 2011.

The Rating Outlook is Stable.

Fitch's expectation is that AIG will use proceeds from $750 million issuance to refinance existing short-term debt and for general corporate purposes. Fitch expects AIG to manage holding company leverage below 15%.

The $600 million and $400 million issuances are part of AIG's Matched Investment Program where the proceeds are invested in assets and the company earns spread income. Fitch does not include issuance from this program as part of AIG's holding company financial leverage.

Fitch's ratings on AIG continue to reflect the company's very strong earnings power, significant franchises in life and non-life insurance both domestically and internationally, and very strong financial flexibility.

Fitch has assigned the following ratings with a Stable Outlook:

American International Group, Inc.

--Senior notes, 5.60%, due October 18, 2016 'AA';

--Senior notes, 5.375, due October 18, 2011 'AA';

--Senior notes, Floating rate, due October 18, 2011 'AA'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.derivativefitch.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.