A.M. Best cuts financial ratings of AIG companies

Rating agency A.M. Best has downgraded the financial strength ratings of most of American International Group Inc.’s (AIG) operating subsidiaries based on the recent announcement by the group that it will restating four years of its financial reports. An AIG investigation into its accounts also revealed an estimated inflated value on the balance-sheet of about US$2.7 billion a figure significantly greater than had been anticipated by rating agencies. The cut of the US$2.7 billion, which represents about 3.3% of AIG’s shareholder equity, is the prime motivation for A.M. Best’s decision to downgrade the ratings of the AIG subsidiaries to "A+" from "A++".