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S&P no longer considering AIG downgrade

By Associated Press
May 21, 2008 | Comments (0)

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Standard & Poor's Ratings Services is no longer considering cutting American International Group Inc.'s credit rating because the insurer has raised enough cash to ensure stability, the ratings agency said Wednesday.

S&P had been considering a downgrade of AIG because the company lost more than $13 billion in the past six months. AIG has recorded losses on its investment portfolio and a book of contracts suffering from illiquidity and the perception of bad credit.

AIG has raised about $17 billion, out of $20 billion planned, by selling stock and bonds. This cash replaces the capital depleted from the portfolio losses, S&P said.

S&P maintains a "AA-" rating, which implies "high grade" credit quality.

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