S&P drops American General to junk

Standard & Poor's said it lowered the counterparty credit rating on American General Finance Corp. to BB+/B from BBB/A-3 and removed it from CreditWatch negative, where it was placed Oct. 8.

The outlook is negative.

"The company's credit profile is under pressure because of 1ess secure access to funding, deteriorating asset quality, diminished operating flexibility reflecting the difficulties of its parent and a weak market environment for consumer-related businesses," S&P analyst Adom Rosengarten said in a statement.

"However, the current rating takes into account some funding support from the company's parent in the near term, and the prospect that this would give the company time to secure additional funding sources," Rosengarten said.

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