Nov. 5 (Bloomberg) -- American International Group Inc., the insurer bailed out by the U.S. government, may have the ratings of its property and casualty units downgraded by Standard & Poor's because of the departure of customers and employees.

AIG's property-casualty subsidiaries are ``particularly susceptible'' to falling insurance rates industrywide after the government took over the New York-based insurer in September, S&P said today in a statement. The units' ratings may be cut one or two levels next year if their prospects worsen, S&P said.

Chief Executive Officer Edward Liddy said AIG would keep its property-casualty units and sell almost all other businesses, including life insurance units, to repay the $85 billion government loan that staved off bankruptcy in September. The company got access to an additional $37.8 billion on Oct. 8 to shore up its securities-lending program.

``There have been wide reports that competitors are actively pursuing AIG's accounts and key underwriting personnel,'' analysts led by Rodney Clark said in the statement.

To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net

Last Updated: November 5, 2008 18:06 EST