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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 02, 2020 11:36 AM (EDT)
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.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.