On April 21, 2004, Standard & Poor's Ratings Services affirmed its 'BB+' counterparty credit rating on American Equity Investment Life Holding Co. (AEI) and its preliminary ratings on the shelf registration filed March 14, 2004 (see ratings list). 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 on all these companies is stable. The financial strength rating on AEILIC reflects its good competitive position in the annuity industry for its chosen markets, improving profitability, strong capitalization, strong liquidity, and seasoned management team. These strengths are offset by the high exposure to interest rate risk due to the asset concentration in
