Fitch Rates AIG's New Sr Unsecured Notes 'BBB'

  Fitch Rates AIG's New Sr Unsecured Notes 'BBB'

Business Wire

CHICAGO -- June 27, 2012

Fitch Ratings has assigned a rating of 'BBB' to American International Group,
Inc.'s (AIG) $750 million issuance of new 4.875% senior unsecured notes due
2022. All other AIG ratings are unchanged, including AIG's Issuer Default
Rating (IDR) of 'BBB' with a Positive Rating Outlook.

Proceeds from the issue will be used for general corporate purposes, including
refinancing of debt maturing in 2013. The new issuance, coupled with debt
issuance and share repurchase activity in May will increase AIG's pro forma
financial leverage ratio (excluding financial related debt) modestly to 20%.

Fitch's ratings on AIG and its subsidiaries primarily reflect the benefits of
the AIG organization's strong competitive positions in life and non-life
insurance partially offset by the comparatively poor recent operating results
of the company's core insurance operations. The Positive Outlook on AIG's IDR
continues to reflect improvements in the company's liquidity and financial
profile over the last 12-18 months as it sheds operations and de-leverages the
balance sheet.

Key triggers that could lead to rating upgrades include:

--Earnings improvements at insurance subsidiaries' Chartis and SunAmerica that
translate into higher earnings-based interest coverage;

--Further transition of AIG's capital structure and leverage metrics to those
of a more traditional insurance holding company that generates a meaningful
reduction in the company's Total Financing Commitments ratio (TFC);

--Enhanced underwriting profitability and demonstrated reserve stability of
the company's non-life insurance subsidiaries;

--Further stabilization of sales trends and profitability of the company's
domestic life insurance subsidiaries;

--Material increases in Chartis' NAIC risk-based capital ratios.

Key triggers that could lead to rating downgrades include:

--Declines in underwriting profitability and heightened reserve volatility of
the company's non-life insurance subsidiaries that Fitch views as inconsistent
with that of comparably-rated peers and industry trends;

--Deterioration in the company's domestic life subsidiaries' sales or
profitability trends;

--Material declines in RBC ratios at either the domestic life insurance or the
non-life insurance subsidiaries.

Fitch has assigned the following rating:

American International Group, Inc.

--$750 million of 4.875% senior unsecured notes due 2022 rated 'BBB'.

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Insurance Rating Methodology', Sept. 22, 2011.

Applicable Criteria and Related Research:

Insurance Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651018

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Contact:

Fitch Ratings
Primary Analyst
James B. Auden, CFA, +1-312-368-3146
Managing Director
Fitch, Inc.
70 W. Madison Street
Chicago IL 60602
or
Secondary Analyst
Tana M. Higman, +1-312-368-3122
Director
or
Tertiary Analyst
Julie A. Burke, CPA, CFA, +1-312-368-3158
Managing Director
or
Committee Chairperson
Keith M. Buckley, CFA, +1-312-368-3211
Managing Director
or
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