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News focus - Fitch issues revised AIG ratings in light of settlement.

Europe Intelligence Wire

| March 01, 2006 | COPYRIGHT 2006 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Reinsurance)

Fitch Ratings has said that its ratings on AIG and AIG subsidiaries, including American General Finance Company (AGF) and International Lease Finance Corporation (ILFC), remain on Rating Watch Negative.

Fitch views the financial effect of the settlement as a 'sizeable but manageable figure' for a company with AIG's earnings profile and overall financial flexibility. Fitch plans to meet with AIG management to resolve its Rating Watch status, and anticipates those discussions will focus on a number of key areas.

AM Best is maintaining its existing 'under review' status of the financial strength ratings (FSR) of the member companies of AIG. On 4 May 2005, the FSRs of most of AIG's wholly owned subsidiaries were downgraded to A+ (Superior) from A++ (Superior) after the company's ...

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