Fitch Rates AIG's Sr Debt Issues 'AAA'; Rating Watch Negative.Business Editors CHICAGO--(BUSINESS WIRE)--May 9, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has assigned a 'AAA' rating on Rating Watch Negative to American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. , Inc.'s (AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group ) issues of senior debt due 2008 and 2013. The new debt issuances are not being offered and sold in a registered offering and are being offered and sold in a Rule 144A/Regulation S offering. The new offering is made up of two issues: $500 million in five-year notes and $1.0 billion in ten-year notes. Fitch expects that the proceeds from the issuance will be used to repay commercial paper borrowings. Therefore, total leverage should be unchanged. AIG's holding company ratings were placed on Rating Watch Negative on February 3, 2003, following the company's announcement of after-tax reserve charges of $1.8 billion in its U.S. commercial property/casualty operations. At the time, Fitch said that it would take a 'fresh look' at its ratings on AIG's debt since the charge fell outside of expectations. Fitch is in the process of completing a comprehensive review of AIG operations, financial results and expectations for future performance. At the conclusion of the review, the senior debt rating will either be affirmed at 'AAA' or lowered to 'AA+'. Fitch expects to resolve the Rating Watch in the near term. AIG is among the highest rated corporate issuers in Fitch's global rating universe. Fitch notes numerous overwhelming strengths exhibited by AIG that support the extremely high rating levels throughout the organization. These include the company's pre-eminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae global insurance organization, with excellent worldwide brands and franchises, strong balance sheet fundamentals and excellent operating results. In addition, the organization has exhibited strong underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. skills and adept reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. management. Fitch also views very favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. the diversified nature of the organization's products, distribution systems and geographic reach. This diversification, which is unequaled in the insurance industry and among the strongest in the broader financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry, has contributed to AIG's ability to generate stable and predictable historical operating results, as well as develop a broad and deep management team. Entity/Issue/Type Action Rating/Watch American International Group, Inc. --Senior notes due 2008 Assigned 'AAA'/Negative; --Senior notes due 2013 Assigned 'AAA'/Negative. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion