AMP Ameriprise Financial Inc

A.M. Best Co. has assigned an issuer credit rating (ICR) of "a-" to Ameriprise Financial, Inc. (Ameriprise) (Minneapolis, MN) (NYSE: AMP), the ultimate holding company for the former subsidiaries of American Express. Concurrently, A.M. Best has assigned an indicative rating of "a-" to the senior unsecured debt under the company's $1.7 billion shelf registration recently filed with the Securities and Exchange Commission. All ratings have a negative outlook. The financial strength ratings and ICRs of IDS Life Insurance Company and its subsidiaries remain unchanged. Once the shelf is declared effective, A.M. Best expects Ameriprise to draw down about $1.5 billion of senior unsecured notes. The majority of the draw-down proceeds will likely be used to refinance its $1.35 billion bridge facility, which was used to replace the company's inter-company debt payable to American Express Company at the time of the spin off. Ameriprise's current debt-to-capital ratio of approximately 16% is expected to remain relatively consistent in the near to medium term, with fixed charge coverage of over seven times. A.M. Best believes that future earnings and cash flow will provide strong debt service coverage and enable improved capitalization at the company and its life/health insurance subsidiaries. The negative outlook reflects A.M. Best's concerns about the inherent risks associated with re-branding the enterprise, the successful execution of plans to separate its operations from American Express, as well as the challenges to maintain consistent operating results and appropriate capitalization levels for the current ratings. For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.