An S&P credit analyst Rodney Clark said in a statement: “We believe AIG has sufficient capital and liquidity to meet its policy obligations and potential collateral requirements, which are significantly greater than the expected cash losses on the mortgage-related assets. “However, additional market-value losses will place some strain on the company’s resources,” Clark said.
AIG has AA-/A-1+ counter-party credit and senior debt ratings from New York-based S&P.
The rating agency said that, given the movement in AIG’s share price as well as an increase in credit spreads on the company’s debt, it now believes that AIG’s potential access to the capital markets may be more restricted in the short term.
AIG’s subsidiaries have an S&P financial strength rating of AA+, which S&P said also is under review. S&P said it will continue discussions with AIG during the coming weeks regarding liquidity and capital plans.