AIG units downgraded as they face "fundamental" problems

08/5/2009 | Wall Street Journal, The

Downgrades on two American International Group lending units by Moody's Investors Service illustrate the uphill battle the firms face in finding a buyer or debt financing. Moody's lowered the ratings on American General Finance and International Lease Finance to Baa3, which is one notch above junk status, while putting the ratings of both firms on watch for further downgrades. "The fundamental problem here is that the wholesale funded finance company model is dead in the water for the time being," said David A. Havens, a Hexagon Securities analyst.

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Wall Street Journal, The