Moody's may lower AIG subordinated debt rating

Moody's Investors Service said it has placed the Ba2 subordinated debt rating of American International Group, Inc. on review for possible upgrade in light of the company's recently completed divestitures of its international life insurance units.

The agency added that the initial public offering of AIA Group Ltd. and the sale of American Life Insurance Co. are important milestones in AIG's government-backed restructuring effort.

Moody's said also that AIG's core insurance operations generated pretax operating income of $2.1 billion for 3Q 2010, which was fairly consistent with the prior two quarters and within rating expectations.

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