Fitch Rates Ameriprise Financial Inc.'s Senior Debt 'A-'

Fitch Ratings has assigned an 'A-' rating to Ameriprise Financial, Inc.'s (NYSE: AMP) issuance of $750 million of 5.3% senior notes due March 8, 2020. AMP's other ratings are not affected by this rating action. The Rating Outlook is Negative. See complete list of ratings at the end of this release.

AMP's equity-adjusted financial leverage is expected to remain below 20% following the debt issuance. This is within Fitch's expectations for the current rating. At year-end 2009, AMP's equity-adjusted financial leverage was 17%, including non-recourse debt.

Fitch expects the debt issuance proceeds will remain at the holding company for the near term. Giving effect to the new issuance, Fitch estimates the holding company will have a cash balance of about $2.2 billion, which will be used to fund AMP's approximately $1 billion acquisition of asset manager Columbia Management (expected to close this spring) and a $340 million debt maturity in November 2010. There are no other near-term debt maturities. Fitch projects GAAP EBIT-to-interest coverage in the 9 times (x) range and cash coverage above 8x times in 2010.

AMP's ratings continue to reflect Fitch's view that projected investment losses over the next 12-18 months are manageable in the context of the company's capital base and earnings. Fitch believes that AMP's conservative financial management over the past few years has positioned the company well relative to many peers to weather the turmoil in the financial markets. In addition, the risk profile of AMP's large variable annuity business benefits from the company's more limited exposure to aggressive living benefit guarantees and is considered to be lower risk compared with peers.

The Negative Outlook reflects Fitch's concern about further deterioration in the financial markets, and the impact it could have on AMP's capital and earnings profile. AMP has a relatively large exposure to the equity markets through its variable annuity and asset management businesses. It is also exposed to significant statutory reserve requirements related to its variable annuity living benefit liabilities. While Fitch believes the company has done an effective job mitigating these risks to date, it also notes that a greater than expected decline in earnings and capital could lead to a downgrade.

These rating actions reflect the application of Fitch's current criteria which is available at 'www.fitchratings.com' and specifically include the following reports:

--'Insurance Rating Methodology, Global Master Criteria' (Dec. 29, 2009);

--'Life Insurance Rating Criteria (Global)' (March 2, 2007).

Fitch has assigned an 'A-' rating to the following issuance:

Ameriprise Financial, Inc.

--$750 million of 5.3% senior notes maturing in 2020.

Fitch's existing ratings are unaffected and remain on Negative Outlook:

Ameriprise Financial, Inc.

--Long-term Issuer Default Rating (IDR) at 'A';

--Senior notes at 'A-';

--Junior subordinated notes at 'BBB'.

RiverSource Life Insurance Company

--Insurer Financial Strength (IFS) at 'AA-'.

RiverSource Life Insurance Company of New York

--IFS at 'AA-'.

Additional information is available at 'www.fitchratings.com'.

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