AM Best Assigns Issue Credit Rating to American Equity Investment Life Holding Company’s New Preferred Stock

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bb” to the $400 million 5.95%, perpetual, non-cumulative preferred stock recently issued by American Equity Investment Life Holding Company [NYSE: AEL] (AEL) (West Des Moines, IA). The outlook assigned to this Credit Rating (rating) is stable.

AEL intends to use the proceeds to repurchase subordinate debt along with general corporate purposes. AM Best notes that financial leverage and interest coverage metrics will experience modest declines but will remain within AM Best methodology guidelines.

The outlooks remain unchanged, with Long-Term Issuer Credit Ratings of “a-” for American Equity Investment Life Insurance Company and its subsidiaries.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.