Printer Friendly

DUFF & PHELPS: AMERICAN GENERAL CORPORATION SENIOR DEBT RATING UPGRADED TO 'AA' COMMERCIAL PAPER RATING REAFFIRMED AT DUFF 1+

 CHICAGO, July 7 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has upgraded the senior debt rating of American General Corporation (NYSE: AGC) (American General) to `AA' (Double-A) from `AA-' (Double-A- Minus). Double-A rated securities are defined as having high credit quality. The rating action reflects the company's very strong and improved capitalization and interest coverage. In addition, Duff & Phelps has reaffirmed American General's commercial paper rating of Duff 1+ (One-Plus), the highest short-term rating.
 American General is a consumer financial services organization based in Houston with $41.2 billion of total assets and $4.7 billion of shareholders' equity at March 31, 1993. The company has four business segments: retirement annuities, consumer finance, insurance - special markets, and insurance - home service. The home service business is the company's primary earnings contributor and serves to fund the growth of the other business lines. American General expects most of its future growth to come from retirement annuities and consumer finance. Insurance - special markets is the company's ordinary life segment whose core product lines are interest sensitive life, individual annuities, and traditional life.
 American General's fixed obligation ratio was 22 percent at March 31, 1993. This ratio has trended downward since yearend 1988 when it was 36 percent. We expect the fixed obligation ratio to remain near current levels. The fixed charge coverage ratio was 7.5 times for the year ended Dec. 31, 1992, and 8.1 times for the three months ended March 31, 1993. Fixed charge coverage ratio has improved in each of the last four years. In 1988, this ratio was 3.2 times.
 American General has very good asset quality. Bonds represented 77 percent of total invested assets at Dec. 31, 1992. Below investment grade securities made up only 3 percent of the bond portfolio. Mortgage loans comprised 13 percent of total invested assets at yearend. American General's mortgage portfolio has significantly out-performed the life insurance industry averages. Investment real estate, policy loans, and equities and other long-term investments made up the balance of the portfolio at 4 percent, 4 percent, and 2 percent, respectively.
 -0- 7/7/93
 /CONTACT: Julie A. Burke, CPA of Duff & Phelps Credit Rating Co., 312-368-3158/
 (AGC)


CO: American General Corporation ST: Texas IN: FIN SU: RTG

LR -- NY034 -- 9043 07/07/93 11:31 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 7, 1993
Words:381
Previous Article:LILCO $145 MILLION 6.25 PERCENT DEBENTURES DUE 2001 RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --
Next Article:TIME WARNER HOUSTON PURCHASES OVER $3 MILLION IN C-COR/COMLUX DIGITAL FIBER OPTIC EQUIPMENT TO LINK MAJOR HUB SITES
Topics:


Related Articles
HOUSEHOLD INTERNATIONAL, HOUSEHOLD FINANCE DEBT RATINGS LOWERED BY DUFF & PHELPS
AMERICAN GENERAL CORPORATION SENIOR DEBT RATING REAFFIRMED AT 'AA-' COMMERCIAL PAPER RATING REAFFIRMED AT 'DUFF 1+'
DUFF & PHELPS: DUFF & PHELPS UPGRADES CHRYSLER AND CHRYSLER FINANCIAL
PRIMERICA CORPORATION RATINGS REAFFIRMED
DUFF & PHELPS REAFFIRMS RATINGS ON ITT FINANCIAL CORPORATION
DUFF & PHELPS REAFFIRMS GM AND GMAC DEBT RATINGS
LEUCADIA NATIONAL CORPORATION $100 MILLION SENIOR NOTES ISSUE DUE 2008 RATED 'BBB-' SENIOR SUBORDINATED NOTES RATING REAFFIRMED AT 'BBB-' CONVIRTIBLE...
DUFF & PHELPS UPGRADES CHRYSLER AND CHRYSLER FINANCIAL
DUFF & PHELPS: FOOTHILL CAPITAL CORPORATION PLACED ON RATINGS WATCH--UP
DCR Rates Conseco, Inc.'s $1.4 Billion Commercial Paper Program D-2

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters