A.M. Best has assigned an issue rating of “a-” to the $500 million 2.875% 10-year senior unsecured notes, due Sept. 15, 2026, issued by Ameriprise Financial, Inc. (Ameriprise Financial) (headquartered in Minneapolis, MN) [NYSE:AMP]. The outlook assigned to the rating is stable. All other ratings of Ameriprise Financial and its subsidiaries are unchanged.

A.M. Best expects the proceeds from the issuance to be used for general corporate purposes. The debt offering is a drawdown from the company’s shelf registration filed in April 2015. With this issuance of the new debt instrument, A.M. Best calculates Ameriprise Financial’s debt-to-capital ratio to initially rise to approximately 30%, which remains in line with A.M. Best’s guidelines for the rating level. The organization’s financial leverage has historically remained at the lower end of the rating range and is generally conservative compared with its industry peers. In addition, A.M. Best expects interest coverage to remain very strong. The pro forma impact on financial leverage, along with interest expense coverage, is expected to remain well within A.M. Best’s expectations for the assigned rating.

Ameriprise Financial continues to benefit from its strong fee-based businesses, growth in client and advisory activity and increased sales and deposits in the protection and variable annuity space. Somewhat offsetting these positive results are the company’s slightly higher exposure to interest rates and equity markets, which continues to impact its earnings. Ameriprise Financial may continue to experience net outflows in its annuity and asset management businesses due to the ongoing volatility in the financial markets.

This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. BestEdward KohlbergManaging Senior Financial Analyst+1 908 439 2200, ext. 5664edward.kohlberg@ambest.comorThomas RosendaleAssistant Vice President+1 908 439 2200, ext. 5201thomas.rosendale@ambest.comorChristopher SharkeyManager, Public Relations+1 908 439 2200, ext. 5159christopher.sharkey@ambest.comorJim PeavyAssistant Vice President, Public Relations+1 908 439 2200, ext. 5644james.peavy@ambest.com

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