Fitch lowers American General

Fitch Ratings said it downgraded the long-term issuer default and senior unsecured debt ratings of American General Finance, Inc. and American General Finance Corp. to BB from BBB, their short-term ratings to B from F1 and the preferred stock of AGFC Capital Trust I to B from BB.

The short-term ratings were withdrawn. The other ratings remain on Rating Watch negative.

The agency said the downgrade coincides with the downgrade of parent American International Group, Inc. and primarily reflects Fitch's view of AIG's reduced long-term willingness and ability to provide financial support to American General. Fitch believes that American General is not viewed as a core part of AIG's franchise, and support beyond maintaining timely repayment of near-term obligations is not envisioned.

The agency said it also expects that market conditions for American General's collection and liquidation activities will remain challenged for the foreseeable future.

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