AIG 2006 Annual Report Download - page 123

American International Group, Inc. and Subsidiaries
AIG, ILFC and AGF expect to replace or extend these credit
Revolving Credit Facilities
facilities on or prior to their expiration. Some of the facilities, as
AIG, ILFC and AGF maintain the following committed, unsecured noted below, contain a ‘‘term-out option’’ allowing for the
revolving credit facilities in order to support their respective conversion by the borrower of any outstanding loans at expiration
commercial paper programs and for general corporate purposes. into one-year term loans.
Available
Amount One-Year
(in millions) December 31, Term-Out
Facility Size Borrower(s) 2006 Expiration Option
AIG:
364-Day Syndicated Facility $1,625 AIG $1,625 July 2007 Yes
AIG Funding(a)
AIG Capital Corporation(a)
5-Year Syndicated Facility 1,625 AIG 1,625 July 2011 No
AIG Funding(a)
AIG Capital Corporation(a)
364-Day Bilateral Facility 3,200 AIG(b) 505 November 2007 Yes
AIG Funding
364-Day Intercompany Facility(c) 2,000 AIG 2,000 October 2007 Yes
Total AIG $8,450 $5,755
ILFC:
5-Year Syndicated Facility $2,500 ILFC $2,500 October 2011 No
5-Year Syndicated Facility 2,000 ILFC 2,000 October 2010 No
5-Year Syndicated Facility 2,000 ILFC 2,000 October 2009 No
Total ILFC $6,500 $6,500
AGF:
364-Day Syndicated Facility $2,125 American General Finance $2,125 July 2007 Yes
Corporation
American General Finance, Inc.(d)
5-Year Syndicated Facility 2,125 American General Finance 2,125 July 2010 No
Corporation
Total AGF $4,250 $4,250
(a) Guaranteed by AIG.
(b) This facility can be drawn in the form of loans or letters of credit. All drawn amounts shown above are in the form of letters of credit.
(c) Subsidiaries of AIG are the lenders on this facility.
(d) American General Finance, Inc. is an eligible borrower for up to $400 million only.
Credit Ratings
The cost and availability of unsecured financing for AIG and its subsidiaries are generally dependent on their short-term and long-term
debt ratings. The following table presents the credit ratings of AIG and certain of its subsidiaries as of February 28, 2007. In
parentheses, following the initial occurrence in the table of each rating, is an indication of that rating’s relative rank within the agency’s
rating categories. That ranking refers only to the generic or major rating category and not to the modifiers appended to the rating by the
rating agencies to denote relative position within such generic or major category.
Short-term Debt Senior Long-term Debt
Moody’s S&P Fitch Moody’s(a) S&P(b) Fitch(c)
AIG P-1 (1st of 3) A-1+ (1st of 6) F1+ (1st of 5) Aa2 (2nd of 9) AA (2nd of 8) AA (2nd of 9)
AIG Financial Products Corp.(d) P-1 A-1+ — Aa2 AA —
AIG Funding, Inc.(d) P-1 A-1+ F1+ — — —
ILFC P-1 A-1+ F1 (1st of 5) A1 (3rd of 9) AA-(e) (2nd of 8) A+ (3rd of 9)
American General Finance Corporation P-1 A-1 (1st of 6) F1 A1 A+ (3rd of 8) A+
American General Finance, Inc. P-1 A-1 F1 — — A+
(a) Moody’s Investors Service (Moody’s). Moody’s appends numerical modifiers 1, 2 and 3 to the generic rating categories to show relative position within
rating categories.
(b) Standard & Poor’s, a division of the McGraw-Hill Companies (S&P). 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 (Fitch). 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.
(e) Negative rating outlook. A negative outlook by S&P indicates that a rating may be lowered, but is not necessarily a precursor of a ratings change. The
outlook on all other credit ratings in the table is stable.
Form 10-K 2006 AIG 73