Fitch Issues Updated Credit Analysis on AIG

Fitch Ratings today published an updated credit analysis on American International Group

. The report provides a comprehensive analysis of AIG's credit, operating and financial profile. Fitch has an Issuer Default Rating of 'BBB+' on AIG with a Stable Rating Outlook. AIG's net profits over the last four years were materially affected by noncore operations' results and restructuring activity. With the divestiture or runoff of many non-core operations and the December 2012 sale of the remaining U.S. government common stock ownership in AIG, the company is now an independent, publicly owned company with operational focus on global property casualty insurance and domestic life and retirement services. The company has substantially reduced financial leverage since 2009. The pending sale of a large majority stake in aircraft lessor International Lease Finance Corporation (ILFC) will further reduce consolidated leverage and promote the operational focus on insurance operations. Fitch believes that AIG's future earnings and interest coverage improvement will hinge on the performance of the company's core insurance segments, particularly in property casualty operations. Fitch's recent upgrade of the life insurance subsidiaries was largely driven by a return to stronger operating profits and earnings stability. Core U.S. property casualty results in 2012 were negatively affected by Hurricane Sandy losses, which were outsized relative to peers. AIG has approximately $5.9 billion of debt maturing in 2013 and in 2014. Almost two-thirds of this is related to operating debt where the company has assets maturing to fund the repayment. Fitch believes that AIG's holding company resources are adequate to fund near-term debt maturities. The full report 'American International Group' is available at 'www.fitchratings.com'.