Moody's Investors Service announced yesterday that it has affirmed the ratings of New York-based American International Group's structured investment vehicle Nightingale Finance that is based in the United Kingdom's Channel Islands.
Its rating affirmation follows the restructuring of Nightingale by the vehicle's sponsor, Banque AIG. Under that plan the AIG Financial Products Corp. unit will buy $2.2 billion of Nightingale senior debt or replace it with loans.
Structured investment vehicles such as Nightingale use short-term borrowing to invest in higher-yielding securities. The value of Nightingale assets have been weakened by the U.S. mortgage crisis.
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