American International Group (AIG) Inc. has had its ratings cut left, right and center after its recent rally. AIG, which recently closed above US$50 for the first time after plunging to a low of US$7 in March 2009 (from over US$400 back in September, 2008), was slammed with back-to-back downgrades this week.
Yesterday, Wells Fargo & Co. cut AIG’s ratings to “underperform” from “perform”, saying it has “virtually no book value” and the stock price is overvalued. Earlier this week, Credit Suisse acted similarly, downgrading the insurer to “underperform” from “perform”.
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