S&P Rates AIG's (AIG) 4.125% Snr. Unsecured Notes Offering at 'A-'

Standard & Poor's Ratings Services said that it has assigned its 'A-' rating to American International Group Inc.'s (NYSE: AIG) $1.0 billion 4.125% senior unsecured notes due in 2024. AIG intends to use the proceeds from the notes for general corporate purposes.

AIG's financial leverage as of June 30, 2013, pro forma for the current issue and some recent reductions in current notes outstanding, was about 21%. Its EBITDA fixed-charge coverage ratio for 2012 was near 3x, but we expect it to improve significantly to around 5x in 2013, reflecting better earnings from both its AIG Property Casualty and AIG Life and Retirement operating units. Through the first six months of 2013, fixed-charge coverage was close to 6x. We do not expect the current issue to affect leverage and coverage metrics materially as debt retirement initiatives undertaken in 2013 should largely offset this new issue.

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