OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “a-” to the $500 million 3.00% 5-year senior unsecured notes, due April 2, 2025, 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.
AM Best expects the proceeds from the issuance to be used for general corporate purposes. Following the repayment of a $750 million debt maturity on March 15, 2020 and with this issuance of the new debt instrument, AM Best calculates that Ameriprise Financial’s debt-to-capital ratio will modestly decline to approximately 34%, which remains in line with AM Best’s guidelines for the rating level. In addition, AM Best expects interest coverage to remain very strong. The financial leverage, along with interest expense coverage, should remain well within AM Best’s expectation for the assigned rating.
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