AIG - Standard and Poor's - S&P

  • 2010 0526 - COP - Hearing - Rodney Clark (Managing Director, Ratings Services, Standard & Poor's) - 10p
    • (p5) - The next day, on September 16, 2008, the Federal Reserve Bank of New York announced
      that it would extend an $85 billion borrowing facility to AIG.

      • Were it not for this government assistance, we believe that AIG’s creditworthiness would have continued to deteriorate.
      • Indeed, our current rating on AIG, which remains at ‘A-’, includes a five-notch “uplift” to account for federal government support. Thus, without government support, our rating on AIG today would be ‘BB’.
    • (p10) - Table of S&P ratings history for American International Group Inc. since June 1990
      Date Rating/Outlook
      26-Jun-1990 AAA/Stable
      29-Oct-2004 AAA/Negative
      15-Mar-2005 AAA/Watch Neg
      30-Mar-2005 AA+/Watch Neg
      03-Jun-2005 AA/Negative
      10-Nov-2006 AA/Stable
      12-Feb-2008 AA/Negative
      08-May-2008 AA-/Watch Neg
      21-May-2008 AA-/Negative
      12-Sep-2008 AA-/Watch Neg
      15-Sep-2008 A-/Watch Neg
      17-Sep-2008 A-/Watch Dev
      03-Oct-2008 A-/Watch Neg
      02-Mar-2009 A-/Negative

<Bonk:> - 2010 0526 - COP - Hearing - Rodney Clark (Managing Director, Ratings Services, Standard & Poor's) - 10p

Standard and Poors

  • 2005 0330 - AAA to AA+
  • 2005 06 - AA+ to AA
  • 2008 02 - Negative Outlook
  • 2008 05 - AA to AA- 
  • 2008 0912 - All of these ratings remain on CreditWatch with negative implications, where they were placed on Sept. 12, 2008.
    • 2008 0915 - WSJ - S&P Downgrades AIG, Citing ‘Reduced Flexibility’- [link]
  • 2008 0915 - AA- to A- 
  • 2008 0915 - WSJ - S&P Downgrades AIG, Citing ‘Reduced Flexibility’- [link]

2010 0526 - COP - Hearing - TARP and Other Government Assistance for AIG - [PDF-241p

Rodney Clark (Managing Director, Ratings Services, Standard & Poor's) - Testimony - 10p

  • On March 30, 2005 S&P downgraded AIG’s rating from ‘AAA’ to ‘AA+’ because of its concern over AIG’s internal controls, especially regarding its financial transactions.
  • S&P again lowered the rating to ‘AA’ in June 2005 based on AIG’s significant accounting adjustments.
  • In February 2008, S&P placed a negative outlook on AIG’s credit rating because of concerns as to how AIG valued it CDS portfolio.
  • The credit rating was again downgraded in May 2008 to ‘AA-’ based in large part on the $5.9 billion loss on its CDS portfolio.
  • As the crisis in the financial markets escalated in September 2008, S&P became more concerned with AIG’s financial condition.
  • The final nail in the coffin occurred on September 15, 2008 when S&P lowered AIG’s rating to ‘A-.’