NEW YORK (Standard & Poor's) Oct. 28, 2004--Standard & Poors Ratings Services affirmed its 'BB+' counterparty credit rating on American Equity Investment Holding Co. (AEI). At the same time, Standard & Poor's affirmed its 'BBB+' counterparty credit and financial strength ratings on AEI's operating subsidiary, American Equity Investment Life Insurance Co. (AEILIC). The outlook is stable. "The financial strength rating reflects AEI/AEILIC's good competitive position in the annuity industry in its chosen markets, improving profitability, strong capitalization, strong liquidity, and seasoned management team," said Standard & Poor's credit analyst Gregory Gaskel. These strengths are offset by our concerns about aggressive asset liability management and product concentration. "Profitability could be affected in the near term if interest rates rise rapidly or
