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.

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