Updated: 10:45 AM EDT Fitch cuts AIG's debt ratings, may cut again
NEW YORK, May 2 (Reuters) - Fitch Ratings on Monday cut its debt ratings on American International Group Inc. and said it may cut them again, citing news that the company will restate more than four years of financial reports, slashing $2.7 billion from its net worth.
The company's failure to meet its self-imposed April 30 deadline for filing its annual report was also a factor in the downgrade, Fitch said. Ratings downgrades usually raise borrowing costs.
Fitch cut AIG's long-term issuer and unsecured senior debt ratings by one notch to "AA," the third-highest rating, from "AA-plus" and its insurance company ratings to "AA-plus" from "AAA." Fitch also downgraded the long-term rating of International Lease Finance Corp. to "A-plus," the fifth-highest rating, from "AA-minus".