Fitch Affirms AIG Capital Corp. & Subsidiaries; Outlook Stable

Business Wire, May 22, 2008

CHICAGO -- Fitch Ratings has affirmed AIG Capital Corporation (AIGCC) and its main subsidiaries, American General Finance Inc. (AGF) and International Lease Finance Corp. (ILFC) following rating actions taken on American International Group, Inc. (AIG) (See separate press release for rating action on AIG). The ratings are removed from Rating Watch Negative. The Rating Outlook is Stable. A full list of rating actions is detailed below.

Fitch has historically notched AIGCC and subsidiaries two notches below AIG's Issuer Default Rating (IDR) rating reflecting in part the stand-alone financial profile of AGF and ILFC combined with the benefits of ownership by a financially strong parent company. In the current context, Fitch believes that the ratings for AIGCC, which primarily reflects AGF and ILFC, approximate the stand-alone credit profile of AIGCC, and thus a narrowing of notching is reasonable assuming AIG continues to operate these enterprises in a manner consistent with respect to capital and leverage. Therefore, although AIG was assigned a Rating Outlook Negative, AIGCC and subsidiaries was assigned a Rating Outlook Stable. Moreover, Fitch recognizes the relative good performance of both AGF and ILFC. While financial results for AGF are weaker than in previous years, they compare favorably to peers and reflect the company's more disciplined underwriting standards. Likewise, ILFC continues to benefit from an upcycle in aircraft finance and exposure is mostly to non-U.S. airlines. Fitch cautions that if AIG were to change targeted leverage ratios, ratings for AIGCC, AGF and ILFC would be revisited.

Fitch has affirmed the following ratings and simultaneously removed them from Rating Watch Negative; The Outlook is Stable:

AIG Capital Corporation

--Long-term IDR at 'A';

--Short-term IDR at 'F1'.

International Lease Finance Corp.

--Long-term IDR at 'A';

--Senior unsecured debt at 'A';

--Preferred stock at 'A-';

--Short-term IDR at 'F1';

--Commercial Paper at 'F1'.

American General Finance, Inc.

--Long-term IDR at 'A';

--Short-term IDR at 'F1';

--Commercial Paper at 'F1'.

American General Finance Corp.

--Long-term IDR at 'A';

--Senior debt at 'A';

--Short-term IDR at 'F1';

--Commercial Paper at 'F1'.

AGFC Capital Trust I

--Preferred stock at 'A-'.

AIG Finance (Hong Kong) Ltd.

--Long-term local currency IDR at 'A';

--Senior unsecured at 'A';

--Short-term local currency IDR at 'F1'.

CommoLoCo, Inc.

--Short-term IDR at 'F1';

--Commercial Paper at 'F1'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.