Standard & Poor’s (S&P) has lowered the long-term credit and senior debt ratings on US-based AIG to AA+ from AAA, and lowered the credit and financial strength ratings on most of AIG’s wholly owned subsidiaries to the same level.

That includes the Australian and NZ operations of American International Assurance and American Home Assurance. All of these group ratings remain on CreditWatch with negative implications.

S&P says the move follows AIG’s announcement that the filing of its annual statements will be delayed further (See International News).

Noting the admission by AIG in the US that accounting irregularities have been uncovered and revealed by new CEO Martin Sullivan, S&P said the “number and scope of inappropriate financial transactions – some characteristic of aggressive financial management – have diminished S&P’s assessment of management and its internal controls, corporate governance, and aggressive culture”.