Fitch lowers AIG subsidiary

Fitch Ratings said it has taken a number of rating actions on American International Group and its subsidiaries, including American General Finance Corp.

These actions incorporate Fitch's assessment of the revised support programs between AIG and the Federal Reserve Bank of New York that were announced earlier.

Fitch said it believes that AIG has the willingness and ability to provide financial support to American General that will allow it to be able to meet its obligations, adding that the degree of the support in the intermediate term is strong and supports an investment grade profile for American General.

However, it remains clear that American General is not viewed as core part of AIG's franchise and support beyond maintaining timely repayment of obligations is not envisioned, Fitch said, noting that it has downgraded the issuer default rating and outstanding debt ratings of American General Finance Corp. as follows: long-term issuer default rating to BBB from A; senior unsecured debt to BBB from A; short-term issuer default rating remains at F1; and commercial paper program remains at F1.

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