Moody's Investors Service downgraded the senior unsecured debt rating of AIG as well as the ratings of several AIG subsidiaries.

FORBES: AIG Fights For Survival

New senior unsecured debt issued on or before June 30, 2009 is fully protected if a bank fails or its holding company files for bankruptcy.

FORBES: The Ownership Society

After the markets closed Monday, Fitch Ratings downgraded AIG's long-term and short-term issuer default rating, as well as its senior unsecured debt and commercial paper program ratings.

FORBES: AIG Fights For Survival

"If they are able to get the Foothill deal done, it would send a tremendous signal to the market, " says Fitch analyst Philip Walker, who still rates Amerco's senior unsecured debt DD, the second lowest of Fitch's default ratings.

FORBES: Amerco's Ticking Debt Clock

The concluding statement of the European Council meeting of March 24-25, 2011, addressing the terms under which EU sovereigns may borrow from the European Stability Mechanism (ESM) confirms our previously published expectations that (i) sovereign debt restructuring is a potential pre-condition to borrowing from the ESM, and (ii) senior unsecured government debt will be subordinated to ESM loans.

FORBES: Brazil's Lula Tells Portugal To Reject IMF Bailout As Lisbon Faces Downgrade

Since that action, Mr. Draghi noted, spreads have fallen, and at least some banks have again been able to issue new senior, unsecured debt.

WSJ: ECB Chief Says Bank Helped Avert Disaster

In addition to being credit negative for Cypriot banks, the willingness to impose losses on bank depositors signals that burden-sharing for senior unsecured bank debt, and potentially deposits, is a viable and realistic policy option for governments in the euro area and perhaps elsewhere in Europe to limit the financial and political costs of bank bailouts.

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