American Equity improved its capital above our 'A' target level through deleveraging and retaining earnings. We are revising our financial risk profile on the company to strong from moderately strong and raising our ratings on the company to 'A-' from 'BBB+'. The stable outlook reflects stronger capitalization, improved capital quality, and our expectation for continued strong operating performance in the fixed-annuity segment. On Aug. 5, 2015, Standard&Poor's Ratings Services raised its long-term counterparty credit and financial strength ratings on American Equity Investment Life Insurance Co. to 'A-' from 'BBB+' and its counterparty credit rating on holding company, American Equity Investment Life Holding Co., to 'BBB-' from 'BB+'. The outlook is stable. The upgrade is based on American Equity
