S&P rates American Equity preferred shares BB

S&P said it has assigned its BB debt rating to American Equity Investment Life Holding Co.’s proposed issuance of fixed-rate reset noncumulative preferred stock, series A.

This rating is two notches below the agency’s BBB- long-term issuer credit rating on American Equity.

The two-notch difference represents the subordination of the issue and the optional dividend deferability of the preferred shares, S&P said.

Proceeds will be used for general corporate purposes and to redeem eight series of subordinated debentures that do not qualify for equity content treatment under S&P’s criteria.

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