Fitch gives American Equity notes BB

Fitch Ratings said it assigned an expected rating of BB to American Equity Investment Life Holding Co.'s proposed issuance of $400 million of senior unsecured notes due 2021.

The company's long-term issuer default rating is unaffected by this rating action.

Fitch said it expects the majority of proceeds from the issuance to be used to fund the redemption of a portion of existing debt on the company's balance sheet. Issuance of the new senior debt is not expected to result in an increase in American Equity's financial leverage ratio to a level above Fitch's rating trigger of 50%.

The company's financial leverage was approximately 36% at March 30, 2013.

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