AIG Post

AIG has already burned through 3/4 of the $85 billion loan from the Fed (or what Eric Posner described as an acquisition, not a loan).

Shares of American International Group (nyse: AIG - news - people ) sank 5.5%, or 22 cents, to $3.78, after soaring 18.3%, earlier in the day, as analysts worried that the credit crunch may make it difficult for AIG to sell its assets at attractive prices. According to TradeTheNews.com, Chairman Edward M. Liddy of AIG said there may not be any buyer for the firm's mortgage insurance unit, although he added that there have been inquiries.

The company said it has drawn down $61.0 billion of its $85.0 billion credit facility from the Federal Reserve as of Tuesday. (See " Investors Not Assuaged Over AIG.")

Standard & Poor's revised the outlook on its ratings of American International Group to "negative" from "developing," because of risks related to the asset sales. S&P is concerned that AIG may have trouble selling its assets at good prices because of the credit crunch.

The agency has an' A-minus rating on AIG, four notches above "junk" status. AIG's insurance operating units remain on review with a "developing" outlook, said S&P.