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.
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Erik Miller, CFA
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