A.M. Best Assigns Rating to Ameriprise Financial, Inc.’s New Senior Notes
August 11 2016 - 9:53AM
Business Wire
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.
Copyright © 2016 by A.M. Best Rating
Services, Inc. ALL RIGHTS RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20160811005615/en/
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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