S&P revises American Equity view to negative

S&P said it revised its outlook on American Equity Investment Life Insurance Co. and holding company American Equity Investment Life Holding Co. (collectively, AEL) to negative from stable. At the same time, the agency affirmed its A-and long-term issuer credit ratings on American Equity Investment Life Insurance Co. and the BBB- long-term issuer credit rating on American Equity Investment Life Holding Co.

“The negative outlook on AEL indicates that we expect the company to be pressured to maintain capital redundancy at the A level based on expectations for higher-than-normal credit losses and possible downgrades of corporate bonds in the investment portfolio. We expect AEL to maintain financial leverage below 30% and adjusted fixed-charge coverage between 6x and 8x,” said S&P in a press release.

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