NEW YORK (Bloomberg) - American International Group Inc.'s (AIG) consumer lender was downgraded to junk by Moody's Investors Service on prospects the bailed-out insurer may stop supporting the unit after November 2010.

"Longer-term support from AIG is less certain because of American General Finance Corp.'s diminished strategic importance to AIG," the ratings firm said yesterday in a statement cutting the senior unsecured debt rating five grades to B2. American General, based in Evansville, Indiana, was previously Baa3, the lowest investment-grade level.

American General has cut more than 1,000 jobs this year and sold mortgage-backed certificates to Credit Suisse Group AG after losing access to its usual sources of funding. New York-based AIG had a third-quarter operating loss of $154 million from the unit, the company said in November.

The lending unit "has had to sell receivables at a loss to generate cash to service debt maturities, in lieu of cash injections from AIG", Moody's said. "Previous to the onset of financial stress at AIG, Moody's believes that AIG would have supported American General, avoiding such losses."

"AIG continues to pursue strategies that best position American General for the long term and achieve maximum value for their portfolios," said Christina Pretto, a spokeswoman for the insurer. "AIG remains committed to supporting American General through November 15, 2010, to the extent that ongoing operations, asset sales, securitisations and/or other transactions are not sufficient to meet its liquidity needs."

American General was cut to junk by Standard & Poor's in February on the prospect of further losses. The company has sold receivables and scaled back on making new loans after losing access to its traditional sources of funding.