Fitch rates AmerUs preferreds BB+

Fitch Ratings said it assigned a BB+ rating to the $250 million AmerUs Group Co. non-cumulative perpetual stock issuance.

The outlook is stable.

The proceeds from the perpetual preferred stock offering will be used to repay the outstanding balance on a revolving line of credit, which was drawn down to retire $125 million in maturing senior debt earlier this month. The remainder of the proceeds will be used to repurchase AmerUs stock and for general corporate purposes.

Fitch allocated 100% equity credit to the new issuance given the perpetual term of the preferred stock combined with the non-cumulative dividend feature.

AmerUs Group Co.'s fixed-charge coverage was 7.5 times in 2004, eliminating realized/unrealized investment gains from the earnings figure. This level of fixed-charge coverage is considered solid, and remains an important component in AmerUs Group Co.'s debt ratings.

Fitch rates AmerUs Group Co.'s perpetual preferred stock at BB+/stable; long-term issuer rating at BBB/stable; Oceans at BBB-/stable; and Prides at BBB/stable.

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