Major credit-rating companies have signed off on the latest revamp af American International Group inc.'s $ 150 billion resue package, people familiar with the matter say, removing the most immediate threat to the plan's implementation.
Both Standard & Poor's and Moody's Investors Services have quietly endorsed the terms of the revised bailout, which was negotiated over a period of months between AIG and US government offials, the people said.
Without the support of the credit tating firms, AIG would have faced crippling cuts to its ratings. The downgrades would likely have forced it to post billions n collateral on an array of financial contracts.
AIG sought the latest revision of the terms on the government aid after its plan to repay as much as $ 100 billion in assistance through asset sales failed. The company has blamed the financial critis-it fourth quarter loss in expected to exceed $60 billion-has also weakened its negotiation position with sutors.
No comments:
Post a Comment