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AIG spreads offer compelling value relative (UBS):
AIG filed its long-awaited 2004 10-K, which included a downward revision of previously reported 2004 net income by 12% and a 2.7% decline in 2004 equity. We believe the filing removes a major hurdle for AIG, but are maintaining our "AA" rating and "Deteriorating" trend until we gain better comfort that the company has resolved its ongoing regulatory/operating challenges. AIG - maintaining our "Outperform" opinion as spreads offer compelling value relative to comparably rated peers.
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