On Dec. 4, 2003, Standard & Poor's Ratings Services affirmed its 'BB+' counterparty credit rating on American Equity Investment Life Holding Co. (AEI) and its 'BBB+' counterparty credit and financial strength ratings on AEI's operating subsidiary, American Equity Investment Life Insurance Co. (AEILIC). At the same time, Standard & Poor's revised the outlook on these companies to stable from negative. The change in outlook follows the successful completion of the recently announced IPO. The amount of equity raised on the IPO is expected to enhance the capitalization strength of the operating company and reduce the financial leverage at the holding company. Management is credited for the ability to execute its short-term plan to improve the financial condition of the holding
