S&P Revises AIG's CreditWatch Status

Standard & Poor's Ratings Services has revised the CreditWatch status of most of its ratings on the AIG group of companies from negative to developing in the wake of the federal rescue of the insurance company. The affected ratings include its A-minus long-term counterparty credit ratings on American International Group and International Lease Finance Corp. and its A-plus counterparty credit and financial strength ratings on most of AIG's insurance operating subsidiaries. S&P also said it has raised the short-term counterparty ratings on AIG, its guaranteed subsidiaries, and ILFC from A-2 to A-1 and downgraded various subsidiaries' preferred shares from BBB to B. S&P credit analyst Rodney A. Clark said the actions of the Federal Reserve Bank of New York, which extended an $85 billion borrowing facility to AIG, will provide the company with "substantial relief from its near-term liquidity constraints." S&P can be found online at http://www.standardandpoors.com.