Rating agency says insurer's capital position has been restored

Standard & Poor's has affirmed its AA+ counterparty credit and financial strength ratings for AIG's core operating subsidiaries, after the insurance group completed its capital raising of $17bn.

It said that the outlook on the ratings is negative.

AIG posted record losses of $7.8bn in the first quarter of this year.

In a statement S&P said that AIG had raised about $17 billion of a total $20 billion planned through the issuance of new common shares, equity units, and junior subordinated debentures.

S&P concluded the capital raised restored the firm to a very strong consolidated capital position.

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