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The following is a press release from Moody's Investors Service: Hong Kong, July 21, 2010 -- On July 19, 2010, American International Group (AIG) announced that it will proceed as soon as practicable with its plan to list its pan-Asian life insurance subsidiary AIA Group on the Hong Kong Stock Exchange, subject to regulatory approvals and market conditions. In addition, AIG announced that Mark Tucker has been named Executive Chairman and CEO of AIA Group, replacing its current CEO Mark Wilson. We currently maintain a Aa3 insurance financial strength rating (negative outlook) on American International Assurance Company (Bermuda) Ltd. (AIAB). AIAB is a core subsidiary of AIA Group and accounts for about 40% of AIA Group's assets. AIA Group operates in 15 markets in Asia. Following the recent announcements, the rating and outlook of AIAB remain unchanged. AIAB's negative rating outlook reflects potential business disruptions owing to the uncertainty over its strategic direction and ownership structure, which has been amplified by senior management turnover. We believe that the re-launch of the initial public offering (IPO) plan, following the termination of a sale agreement with Prudential plc (Prudential) in June 2010, is credit positive. The IPO plan increases clarity about the company's future ownership structure and represents a significant step toward independence from AIG. AIA Group's rating outlook could be moved to stable if the company successfully completes its IPO, generates consistent premium growth and profitability, and maintains normal agency and management turnover. Nonetheless, there is a high degree of uncertainty surrounding the timing and extent of the IPO, given that market conditions have turned less favorable and more volatile since early 2010, when AIA Group was previously considering an IPO. At this stage, we do not rule out the possibility that AIA Group could withdraw its plan for an IPO in favor of an outright sale to a third party, as contemplated in the proposed sale to Prudential. In that event, we would evaluate the impact of such a transaction on AIAB's rating and outlook. Mr. Tucker, the former Group Chief Executive of Prudential from May 2005 to September 2009, will replace Mark Wilson, who has been the CEO of AIA Group since early 2009. We note that the departure of Mr. Wilson represents another important senior management change at the company, although we expect that Mr. Tucker's extensive industry and Asian experience will be helpful to the leadership transition and the IPO. We will continue to monitor AIA Group's development under Mr. Tucker's leadership, including any significant changes in its business and financial strategies, such as distribution, product mix, investment and capital management, and the resultant impact on its credit profile. Copyright 2010 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ARE MOODY'S INVESTORS SERVICE, INC.'S ("MIS") CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS DO NOT CONSTITUTE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS ARE NOT RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. CREDIT RATINGS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MIS ISSUES ITS CREDIT RATINGS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from reliable sources; however, MOODY'S does not and cannot in every instance independently verify, audit or validate information received in the rating process. 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MIS, a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MIS have, prior to assignment of any rating, agreed to pay to MIS for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS's ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Shareholder Relations - Corporate Governance - Director and Shareholder Affiliation Policy." Any publication into Australia of this document is by MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657, which holds Australian Financial Services License no. 336969. This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. This credit rating is an opinion as to the creditworthiness or a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be dangerous for retail investors to make any investment decision based on this credit rating. If in doubt you should contact your financial or other professional adviser. (END) Dow Jones Newswires July 21, 2010 01:34 ET (05:34 GMT)