Reacting to the agreement of American International Group, New York, to sell its Asian life unit to Prudential, LLC, Newark, N.J. for $35.5 billion, Moody’s Investors Service affirmed ratings of two entities and Standard & Poor’s placed one on ratings watch.
S&P placed financial strength ratings of “A-plus” for American International Assurance, the AIG company sold to Prudential LLC, on CreditWatch with developing implications. The rating agency said it has concerns over integration of the two companies.
The ratings of the AIG, primary property and casualty company, were unaffected by the deal.
S&P placed British-based Prudential plc on CreditWatch yesterday with negative implications saying the deal for the AIG unit, American International Assurance, would weaken the company’s key credit metric and that it carries significant execution risk.