Standard & Poor's Ratings Services said it has placed onCreditWatch with negative implications the ratings of 25 housingbond issues partially supported by guaranteed investment contracts(GICs) from certain American International Group companies.
Standard & Poor's said it examined all housing bond issueswith partial credit support by American International Group, AIGMatched Funding Corp., or AIG Financial Products Corp. "For thelocal issuers, Standard & Poor's looked at the issue's relianceupon return of principal and investment earnings to meet bondpayment obligations," the rating agency said.
Should those issuers act to replace or guarantee the existingagreements, Standard & Poor's said, or if they can demonstratethe ability to make bond payment obligations without relying on theinterest earnings on the GIC, ratings will be reviewed upon theissuer's request.
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