Fitch rates American Equity convertible BB-

Fitch Ratings said it assigned a BB- senior debt rating to American Equity Investment Life Holding Co.'s $250 million contingent convertible senior debt due 2024 recently issued.

At the same time, Fitch has assigned a BBB insurer financial strength rating to the company's subsidiary life insurers, American Equity Investment Life Insurance Co. and American Equity Investment Life Insurance Co. of New York. The outlook is stable.

Fitch said the senior debt rating reflects elevated levels of financial leverage at approximately 55% debt and preferred stock at the holding company level after the issuance of the $250 million of senior debt. Fitch's equity adjusted financial leverage that gives equity credit for trust preferred securities is approximately 48% and does not include notes payable to a related party service company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.