Text WASHINGTON–AIG's potential losses from its investment in derivatives of subprime loans could range from not material to a total write-off of 2007's fourth quarter earnings, a Citigroup analyst said today in a note to investors.

And, as AIG issued a statement today saying it doesn't think the potential losses on the exotic securities “will be material,” the fallout from a disclosure which sent its stock to a 20-year low Monday continued.

These included a decision by Standard & Poor's to revise its outlook on the parent company and its core operating subs to negative from stable. But S&P affirmed its AA counterparty credit ratings on the parent company and its AA+ counterparty credit and financial strength ratings on AIG's core subs.

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