New York — The predicament of American International Group (AIG) has become more acute as the company saw its credit rating slashed by Standard & Poor's (S&P), Moody's, Fitch and AM Best. The downgrades raise the specter of the company being forced to quickly sell assets to meet collateral needs with its counterparties.
News of the downgrades, which came after the market closed on Monday,
caused AIG shares to plunge in early trading.
In announcing it’s rating action, S&P said the $20 billion AIG was allowed to access by the New York State Insurance Department on Monday was insufficient to meet all of the company’s short-term cash requirements.
Sources: MarketWatch, INN archives
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access