AIG ratings outlook now stable: Best
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OLDWICK, N.J.—A.M. Best Co. Inc. on Friday revised its outlook on American International Group Inc. and AIG's main operating units to stable from negative, saying that AIG's troubles seem largely behind it.
The Oldwick, N.J.-based rating agency also affirmed AIG's bbb issuer credit rating.
Best revised to stable the outlook for AIG unit Chartis Inc.'s U.S. insurance group and its members, as well as the Lexington Insurance Pool and its members. The units' A financial strength ratings were affirmed.
“The revised outlook for AIG reflects A.M. Best's assessment that the potential for negative effects on the operating insurance companies due to issues at the holding company or in AIG's noninsurance operations has diminished” Best said in a statement referring to its 2008 federal bailout.
“The successful recapitalization of AIG, its issuance of public debt and equity in 2010 and 2011, the execution of new credit facilities to provide backup liquidity and the reduction of risk related to the noninsurance operations have contributed to this assessment,” the rating agency added.
