On Dec. 1, 2004, Standard & Poor's Ratings Services assigned its 'BB+' senior debt rating to American Equity Investment Life Holding Co.'s (AEL) proposed $175 million senior, unsecured convertible debt issue, which is due in 2024. (There is an option to issue an additional $75 million.) The proceeds of the issuance will support AEL's insurance operating company growth. The rating reflects the company's better risk management, the senior team's enhanced capabilities, AEL's well-managed growth without damaging the relationship with its distribution force, improving earnings and interest coverage, improved capital at the operating companies, and strong liquidity. Despite all these positive factors, Standard & Poor's is concerned about the quality of capital and earnings at both the operating companies and the
