Fitch: AIG Rating Won't Hurt HFA Bonds

Fitch Ratings' recent actions on American International Group Inc. will not affect the ratings of state housing finance agency bonds partially supported by investment contracts of AIG Matching Fund Corp., according to the rating agency."The majority of the triple-A rated tax-exempt housing bonds that Fitch rates are part of large parity indentures, with the AIGMFC contracts only comprising a minimal portion of the investment portfolios, making the exposure to AIGMFC limited," said Vincent Barberio, a managing director at Fitch. "Further, AIG's current AA-plus rating still meets the requirements of Fitch's criteria for qualified investments." Fitch said it will continue to monitor the credit implications of the pending resolution of AIG's Rating Watch Negative for the tax-exempt housing bonds. The rating agency can be found online at http://www.fitchratings.com.