Standard & Poor's and Fitch revised their credit ratings for AIG last week in the wake of the Federal Reserve Board's action to provide the troubled firm with liquidity, but both remain cautious about how the company's future will ultimately play out.
Both watchdog firms warned that they will be monitoring the situation closely because of the uncertainty associated with the terms of the government's two-year bridge loan to AIG.
Specifically, S&P said that it raised its short-term counterparty ratings on AIG, its financial guarantee subsidiaries and its International Lease Finance Corp. unit to "A-1″ from "A-2." It also lowered the ratings on various subsidiaries' preferred shares to "B" from "BBB."
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