Iowa-based American Equity has strong business fundamentals and a gradually improving financial profile. We have revised the outlook on American Equity Investment Life Holding Co. and American Equity Investment Life Insurance Co. to stable from positive. American Equity's financial profile is not improving at a pace likely to be sufficient to support higher ratings within the next year. On Sept. 23, 2011, Standard&Poor's Ratings Services revised its outlook on American Equity Investment Life Holding Co. (AEIL) and American Equity Investment Life Insurance Co. (AEL; collectively American Equity) to stable from positive. At the same time, we affirmed our 'BB+' long-term counterparty credit rating on AEIL and our 'BBB+' long-term counterparty credit and financial strength ratings on AEL. The
