A.M. Best Assigns Debt Rating to Ameriprise Financial, Inc.’s New Senior Notes

A.M. Best Co. has assigned a debt rating of �a-� to Ameriprise Financial, Inc.�s (Ameriprise Financial) (Minneapolis, MN) (NYSE: AMP) newly issued $300 million 7.3% senior unsecured notes due 2019. The rating outlook is negative. The 10-year notes are the second drawdown from the company�s recently filed shelf registration. Ameriprise Financial�s existing financial strength, issuer credit and debt ratings are unchanged.

A.M. Best expects the proceeds to be used as part of Ameriprise Financial�s overall strategy to pre-fund $800 million in notes maturing in November 2010 and for general corporate purposes. The company recently issued $200 million of senior notes in the retail market as part of this strategy. While Ameriprise Financial�s financial leverage and interest coverage ratios are expected to remain consistent with its current ratings, A.M. Best will continue to monitor the company�s ability to generate adequate earnings to cover the increased level of interest expenses during the current economic recession.

Ameriprise Financial�s ratings reflect the strong risk-adjusted capitalization of the life insurance companies, the organization�s broad multi-platform network of financial advisors and strong brand recognition in the industry since its separation from American Express several years ago. While the company has experienced substantial realized losses in its investment portfolio over the past year, A.M. Best notes that Ameriprise Financial�s unrealized loss position as a percentage of gross stockholders� equity is lower than many of its similarly-rated peers.

Partially offsetting these positive rating factors is the company�s exposure to the commercial real estate market within its investment portfolio. Excluding agency guaranteed securities, commercial mortgage exposure totals approximately 65% of stockholders� equity. Additionally, the company�s earnings remain highly correlated to the performance of the equity markets and are likely to remain constrained over the near term by depressed asset valuations.

For Best�s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

Ameriprise Financial (NYSE:AMP)
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