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Prospect News home > News index > List of issuers A > Headlines for American International Group, Inc. (AIG) > News item |
Fitch sees AIG sale positively
Fitch Ratings said American International Group, Inc.'s announced private placement of about $6 billion of shares of AIA Group, an Asian life insurer, is another step toward enhancing the company's focus on core operations and earnings as the Department of the Treasury's interest in AIG continue to decline.
The agency expects the sale proceeds to be used to further reduce the Treasury's preferred equity interest in the special-purpose vehicle utilized by AIG to hold its AIA equity position.
Fitch affirmed AIG's issuer default rating at BBB on Feb. 3 and revised the outlook to positive from stable. The rating action noted that positive ratings momentum will be largely driven by a return to a core operations focus, a reduction in financial leverage and improvements in interest coverage linked to stronger earnings performance at AIG's insurance subsidiaries.
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