AM Best Assigns Issue Credit Rating to Ameriprise Financial, Inc.’s New Senior Unsecured Notes

Rhea-AI Summary

Ameriprise Financial, Inc. (NYSE: AMP) has been assigned a Long-Term Issue Credit Rating of 'a-' with a stable outlook by AM Best for their $600 million, 5.7% 5-year senior unsecured notes. The proceeds will be used for general corporate purposes, including pre-funding of senior unsecured notes of $550 million due in October 2024.

Positive

• Ameriprise Financial's debt-servicing capabilities are viewed favorably by AM Best, with strong interest coverage and sufficient liquidity to service its debt.
• The new debt issuance will temporarily increase Ameriprise Financial's projected adjusted financial leverage, but it will remain well within AM Best guidelines for its rating.

Negative

• None.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to the recently announced $600 million, 5.7% 5-year senior unsecured notes, due Dec. 15, 2028, issued by Ameriprise Financial, Inc. (Ameriprise Financial) (headquartered in Minneapolis, MN) [NYSE: AMP]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Ameriprise Financial and its subsidiaries are unchanged.

The proceeds from this debt issuance are expected to be used for general corporate purposes, which may include pre-funding of senior unsecured notes of $550 million due in October 2024.

AM Best notes that Ameriprise Financial’s projected adjusted financial leverage with the new issue will increase temporarily but will remain well within AM Best guidelines for its aforementioned rating. Upon maturity of the 2024 senior unsecured notes, AM Best expects the leverage measures to decline. AM Best views Ameriprise Financial’s debt-servicing capabilities favorably, with sufficient liquidity to service its debt, a well-laddered debt maturity structure and strong interest coverage.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231109356762/en/

Wayne Kaminski

Senior Financial Analyst

+1 908 882 1916

wayne.kaminski@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Jacqalene Lentz, CPA

Director

+1 908 882 2011

jacqalene.lentz@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best

FAQ

What is the Long-Term Issue Credit Rating assigned to Ameriprise Financial, Inc. by AM Best?

Ameriprise Financial, Inc. has been assigned a Long-Term Issue Credit Rating of 'a-' by AM Best.

What are the proceeds from the debt issuance expected to be used for?

The proceeds from the debt issuance are expected to be used for general corporate purposes, including pre-funding of senior unsecured notes of $550 million due in October 2024.

What is the outlook assigned to the Credit Rating?

The outlook assigned to the Credit Rating is stable.