Moody’s Investors Service has maintained a negative outlook on AIG following termination of the proposed life insurance division sale to Prudential.

The ratings agency affirmed a long-term issuer rating of A3 and short-term issuer rating of Prime-1, maintaining a negative outlook on the belief AIG will struggle to attract a comparable deal.

“The termination is credit-negative for AIG, as the company is unlikely to generate cash of that magnitude in the near term from any other disposition of AIA,” Moody’s said in a report.

It identified a “significant execution risk” in AIG’s restructuring plan due to the weak global economy and unsettled capital markets.

The ratings agency expects the US Government to continue to support AIG through the restructuring process as the giant insurer divests non-core businesses and rebuilds core operations.