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The “AAA” debt and counterparty credit ratings on American International Group Inc. (ÌìÃÀÍøÕ¾´«Ã½´«Ã½) were affirmed by Standard & Poor’s (S&P). Concurrently, the “AAA” insurer FSR and counterparty credit ratings on rated insurance subsidiaries of ÌìÃÀÍøÕ¾´«Ã½´«Ã½, including Lexington Insurance Co., were also affirmed.

The rating action resulted from the position taken by Lexington on insurance policies issued in connection with the Hollywood Funding No. 5 and No. 6 film finance transactions, which were lowered by S&P on Feb 2. Subsequent to a dispute over policy coverage, S&P conducted a review and later expressed the belief that ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s market position would not suffer a negative impact as a result of the disputes. In addition, the “AAA” rating on the Hollywood Funding No. 4 Ltd. transaction was lowered to “BB” on March 30. On April 6, the “CCC-” rating on Hollywood Funding No. 5 Ltd.’s $48.4 million notes was lowered to “D.”

On April 3, various ratings on ÌìÃÀÍøÕ¾´«Ã½´«Ã½, its insurance operations and related subsidiaries were affirmed by S&P following ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s announcement of plans to acquire American General Corp. The outlook is stable. The following day, A.M. Best also affirmed its “A++” FSRs of ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s property/casualty and life/health subsidiaries.

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