NU Online News Service, May 2, 4:30 p.m. EDT–American International Group saw its ratings get downgraded by two major ratings firms after its latest postponing of the 10-K filing, but some analysts pointed to AIG's hedging accounting, which could make up for most of the book-value losses from past accounting abuses.
Moody's Investors Service said it has cut its AIG long-term senior debt ratings to "Aa2″ from "Aa1″ with ratings staying on review for possible further downgrade. Fitch Ratings also cut AIG's long-term issuer rating and unsecured senior debt obligations to "Double-A" from "Double-A-Plus." It also lowered AIG's insurance company ratings to "double-A-plus" from "triple-A."
These ratings actions followed AIG's disclosure that its ongoing internal review of past accounting practices would contribute to lowering AIG book value by some $2.7 billion. AIG said it would be restating its 2000-2003 financials as well as the first three quarters of 2004. The company now expects to file its annual 10-K report for 2004 by the end of May.
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