Fitch Rates AIG Senior Debt Issuances.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- 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 an 'AA' rating 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 ) two new senior debt issuances totaling $1.5 billion. As with other AIG long-term obligations, the new ratings assigned are on Rating Watch Negative. AIG is issuing $500 million of 4.7% senior debt due Oct. 1, 2010 and $1 billion of 5.05% senior debt due Oct. 1, 2015. The proceeds will be used primarily to pay retiring debt. These securities are being issued in the 144A market with registration rights. Fitch originally placed the ratings on Rating Watch Negative on March 30, 2005, and views the following near-term uncertainties as material and supportive of the current Rating Watch Negative status: -- The financial effect of civil litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. filed on May 26, 2005 by the New York Attorney General and New York Superintendent of Insurance, -- The magnitude of potential litigation costs from various lawsuits that have been filed, -- The resolution of ongoing investigations by numerous regulators and governmental authorities, -- Results of the independent actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin review of loss reserves, and -- Remediation of material weaknesses cited in the auditor's opinion. Fitch expects to address the Rating Watch when some or all of these uncertainties are resolved or can be reasonably estimated. Fitch believes that AIG and its subsidiaries also face longer term uncertainties, including tangible evidence of how recent developments such as rating downgrades have affected AIG's franchise, competitive position, and future financial performance, resolution of the relationship between AIG and Starr entities, the evolution of ceded 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. strategies and how that may affect future operating results, subsidiary capitalization strategies, and broader potential changes in management strategies. These uncertainties will likely be addressed by Fitch in future Rating Outlook designations. AIG's ratings reflect the company's preeminent global insurance organization, with excellent worldwide brands and franchises, and strong operating results. Fitch also views very favorably the diversified nature of the organization's products, distribution systems, and geographic reach. This diversification has contributed to AIG's ability to generate stable and predictable historical operating results. The following ratings are assigned by Fitch and placed on Rating Watch Negative: American International Group, Inc. -- $500 million, 4.7%, senior debt due Oct. 1, 2010 'AA'; -- $1 billion, 5.05%, senior debt due Oct. 1, 2015 'AA'. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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