Standard & Poor's (S&P) have lowered AIG's long-term counterparty credit and senior debt...
Standard & Poor's (S&P) have lowered AIG's long-term counterparty credit and senior debt ratings to AA from AA+.
S&P credit analyst Grace Osborne said: "The downgrade on the holding company reflects both the size and scope of the accounting adjustments in its recently released 10-K filing.
“Although AIG's overall earnings are considered strong, its property/casualty earnings, as restated, indicate greater volatility as well as less robust profitablity than was previously reported."
The ratings agency affirmed AIG's AA+ credit and financial strength ratings on most of AIG's insurance subsidiaries.
The ratings have been removed from CreditWatch, though their outlook remains negative, S&P said. In the company's long-awaited 31 May 10-K filing with the US Securities and Exchange Commission, AIG cut its reported net income for the five years through to 2004 by $3.92bn.
