AIG to buy back another $5bn in shares from US Treasury
AIG has been rated as a “moderate credit risk” because it uses debt to buy back shares off the US Treasury.
Moody’s gave AIG a “Baa1” rating on the ability to repay its unsecured debt. AIG has taken on debt to buy back another $5bn (£3.1bn) in shares from the US Treasury.
In total, AIG will have snapped up $13bn (£8bn) in shares from the US Treasury, whittling down the US government’s ownership this year to 22% from 77%.
AIG was nationalised by the government in 2008 after a series of bad bets on the US housing market.
Baa1 is rated as “medium grade, with some speculative elements and moderate credit risk”.
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