by Daniel Costello

Could troubled insurer American International Group Inc. actually make good on its nearly $80 billion in taxpayer loans? Moody's thinks so.

AIG's restructuring plan still relies heavily on government support, of course. But if the company's operations and global financial markets continue to stabilize, it may just be able to generate sufficient value to repay the government in full, Moody's said in a statement late Monday. On Tuesday, AIG shares rose nearly 4%.

Is Moody's being a little too optimistic? We'll see.