NU Online News Service, March 2, 2:23 p.m.EST

Reacting to American International Group's agreement to sell itsAsian life unit to Prudential, LLC for $35.5 billion, Moody'sInvestors Service affirmed ratings of two entities and Standard& Poor's placed one on ratings watch.

S&P placed financial strength ratings of "A-plus" forAmerican International Assurance, the AIG company sold toPrudential LLC, on CreditWatch with developing implications. Therating agency said it has concerns over integration of the twocompanies.

The ratings of the AIG, primary property and casualty company,were unaffected by the deal.

S&P placed British-based Prudential plc on CreditWatchyesterday with negative implications saying the deal for the AIGunit, American International Assurance, would weaken the company'skey credit metric and that it carries significant executionrisk.

S&P said it placed Prudential and subsidiaries onCreditWatch negative "because the size and weaker credit profile ofAIA relative to Prudential."

Moody's affirmed the ratings for AIA (Bermuda), which is 40percent of AIA Group's assets and Prudential plc.

While affirming the rating, Moody's noted that there is anegative outlook reflecting the executive risk over thetransaction.