Best’s News & Research Service - November 09, 2023 02:14 PM (EST)
AM Best Assigns Issue Credit Rating to Ameriprise Financial, Inc.’s New Senior Unsecured Notes
- November 09, 2023 02:14 PM (EST)
Oldwick //BestWire// - 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.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.