AIG 2013 Annual Report Download - page 160

agency’s rating categories; that ranking refers only to the major rating category and not to the modifiers assigned by
the rating agencies.
AIG
AIG Financial Products Corp.(d)
AIG Funding, Inc.(d)
(a) Moody’s appends numerical modifiers 1, 2 and 3 to the generic rating categories to show relative position within the rating categories.
(b) S&P ratings may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.
(c) Fitch ratings may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.
(d) AIG guarantees all obligations of AIG Financial Products Corp. and AIG Funding, Inc.
These credit ratings are current opinions of the rating agencies. They may be changed, suspended or withdrawn at
any time by the rating agencies as a result of changes in, or unavailability of, information or based on other
circumstances. Ratings may also be withdrawn at our request.
We are party to some agreements that contain ‘‘ratings triggers’’. Depending on the ratings maintained by one or
more rating agencies, these triggers could result in (i) the termination or limitation of credit availability or a
requirement for accelerated repayment, (ii) the termination of business contracts or (iii) a requirement to post
collateral for the benefit of counterparties.
In the event of adverse actions on our long-term debt ratings by the major rating agencies, AIGFP and certain other
GCM entities would be required to post additional collateral under some derivative transactions, or could experience
termination of the transactions. Such transactions could adversely affect our business, our consolidated results of
operations in a reporting period or our liquidity. In the event of a further downgrade of AIG’s long-term senior debt
ratings, AIGFP and certain other GCM entities would be required to post additional collateral, and certain of the
counterparties of AIGFP or of certain other GCM entities would be permitted to terminate their contracts early.
The actual amount of collateral that we would be required to post to counterparties in the event of such downgrades,
or the aggregate amount of payments that we could be required to make, depend on market conditions, the fair
value of outstanding affected transactions and other factors prevailing at the time of the downgrade.
For a discussion of the effects of downgrades in the financial strength ratings of our insurance companies or our
credit ratings, see Note 11 to the Consolidated Financial Statements and Part I, Item 1A. Risk Factors — Liquidity,
Capital and Credit.
For a discussion of our regulation and supervision by different regulatory authorities in the United States and abroad,
including with respect to our liquidity and capital resources, see Item 1. Business — Regulation and Item 1A. Risk
Factors — Regulation.
On August 1, 2013, our Board of Directors declared a cash dividend on AIG Common Stock of $0.10 per share,
which was paid on September 26, 2013 to shareholders of record on September 12, 2013.
On October 31, 2013, our Board of Directors declared a cash dividend on AIG Common Stock of $0.10 per share,
which was paid on December 19, 2013 to shareholders of record on December 5, 2013.
On February 13, 2014, our Board of Directors declared a cash dividend on AIG Common Stock of $0.125 per share,
payable on March 25, 2014 to shareholders of record on March 11, 2014. The payment of any future dividends will
be at the discretion of our Board of Directors and will depend on various factors, including the regulatory framework
applicable to us, as discussed further in Note 16 to the Consolidated Financial Statements.
Regulation and Supervision
Dividends and Repurchases of AIG Common Stock
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AIG 2013 Form 10-K142
ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES
Short-Term Debt Senior Long-Term Debt
Moody’s S&P Moody’s(a) S&P(b) Fitch(c)
P-2 (2nd of 3) A-2 (2nd of 8) Baa 1 (4th of 9) A- (3rd of 8) BBB (4th of 9)
Stable Outlook Stable Outlook Negative Outlook Stable Outlook
P-2 Baa 1 A-
Stable Outlook A-2 Stable Outlook Negative Outlook –
P-2 A-2 – – –
Stable Outlook
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