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

Rhea-AI Summary

AM Best has assigned a Long-Term Issue Credit Rating of a- (Excellent) to Ameriprise Financial's $500 million, 4.5% senior unsecured notes due May 13, 2032. The outlook is stable, with no changes to other ratings. Proceeds from the debt issuance will support general corporate purposes. Following this issuance, Ameriprise Financial’s adjusted financial leverage is projected to increase to 33%, remaining within rating guidelines. AM Best views the company's debt-servicing capabilities positively, noting strong liquidity and a favorable debt maturity structure.

Positive

• Long-Term Credit Rating of a- assigned by AM Best.
• Stable outlook for the credit rating.
• Debt-servicing capabilities viewed positively by AM Best.
• Strong liquidity to service debt.

Negative

• Projected increased financial leverage to 33%.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to the recently announced $500 million, 4.5% 10-year senior unsecured notes, due May 13, 2032, issued by Ameriprise Financial, Inc. (Ameriprise Financial) (headquartered in Minneapolis, MN) [NYSE: AMP]. The outlook assigned to the 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. AM Best notes that Ameriprise Financial’s projected adjusted financial leverage with the new issue will increase to a range of 33%, but will remain well within guidelines for its aforementioned rating. 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 © 2022 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/20220513005282/en/

Wayne Kaminski

Senior Financial Analyst

+1 908 439 2200, ext. 5061

wayne.kaminski@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jacqalene Lentz, CPA

Director

+1 908 439 2200, ext. 5762

jacqalene.lentz@ambest.com

Jeff Mango

Managing Director,

Strategy & Communications

+1 908 439 2200, ext. 5204

jeffrey.mango@ambest.com

Source: AM Best

FAQ

What is the credit rating assigned to Ameriprise Financial's recent debt issuance?

AM Best assigned a Long-Term Issue Credit Rating of a- (Excellent) to Ameriprise Financial's $500 million senior unsecured notes.

What is the maturity date of the new notes issued by Ameriprise Financial?

The new senior unsecured notes are due on May 13, 2032.

How will Ameriprise Financial use the proceeds from the debt issuance?

The proceeds will be used for general corporate purposes.

What is the outlook for Ameriprise Financial's credit rating?

The outlook assigned to the Credit Rating is stable.

How does AM Best view Ameriprise Financial's debt-servicing capabilities?

AM Best views the company's debt-servicing capabilities favorably, citing sufficient liquidity and a well-laddered debt maturity structure.