S&P raises ratings on AIG's property/casualty units to A+
Reprints
Standard & Poor’s Corp. has raised its long-term counterparty credit and financial strength ratings on the property/casualty operating subsidiaries of American International Group Inc. — AIG Property/Casualty, formerly Chartis Inc. — to A+ from A, S&P announced Monday.
The New York-based rating agency also affirmed the A+ long-term counterparty credit and financial strength ratings on the life insurance subsidiaries of AIG, collectively AIG Life and Retirement, formerly the SunAmerica Financial Group.
The outlook on both groups is stable.
“The change in our assessment of the group status of AIG P/C and AIG L&R reflects the successful restructuring that AIG has undertaken during the past two years,” said Standard & Poor's credit analyst David Zuber in the statement.
“AIG has sold nearly all of the businesses and assets that it had identified as noncore, using the proceeds to repay fully all the borrowings under the various credit and liquidity facilities extended by the Federal Reserve Bank of New York and the U.S. Treasury during the financial crisis that began in 2008,” Mr. Zuber said.
“We could lower our ratings on AIG, AIG P/C and AIG L&R if the group’s performance were to fall short of our expectations, particularly with regard to earnings, capitalization, liquidity, leverage or coverage,” said Mr. Zuber. “On the other hand, we could raise the ratings if the consolidated group were to improve its operating performance, particularly at AIG P/C, to a level consistently better than the industry average while continuing to improve AIG's risk profile.”
Read Next
-
AIG names new CEO of Lexington E&S division
American International Group Inc. on Monday announced the appointment of Jeremy Johnson as president and CEO of Lexington Insurance Co., its excess and surplus lines division.
