Best’s News & Research Service - June 11, 2020 04:37 PM (EDT)
AM Best Assigns Issue Credit Rating to American Equity Investment Life Holding Company’s New Preferred Stock
- June 11, 2020 04:37 PM (EDT)
Oldwick //BestWire// - AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bb” to the $300 million, 6.625%, perpetual, non-cumulative preferred stock recently issued by American Equity Investment Life Holding Company (AEL) (West Des Moines, IA) [NYSE: AEL]. The outlook assigned to this Credit Rating (rating) is stable.
AEL intends to use the proceeds mainly to bolster liquidity and other general corporate purposes. AM Best notes AEL’s financial leverage and interest coverage metrics will experience modest increases but will remain within AM Best’s guidelines for its current ratings.
The Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” with stable outlooks of American Equity Investment Life Insurance Company and its subsidiaries remain unchanged.
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 Guide to 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 analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.