Fitch Rates Ameriprise's $1.5B Senior Debt 'A-'; Affirms 'A-' L-T Issuer Rating.

NEW YORK -- Fitch Ratings has assigned an 'A-' rating to Ameriprise Financial, Inc.'s (AMP) issuance of $1.5 billion in senior notes. Fitch has also affirmed all existing ratings assigned to AMP and its affiliates. The Rating Outlook for all ratings is Stable. A complete list of ratings follows at the end of this release.

Fitch's ratings of AMP and its subsidiaries reflect sound subsidiary statutory capital, moderate financial leverage and strong interest coverage at the holding company, along with the solid position of the IDS Life Insurance Company and its subsidiaries (collectively known as IDS Life), in their core life and annuity markets. Fitch believes that IDS Life has been and will continue to be the primary driver of AMP's profitability over the medium term.

Fitch's primary concern over the near term is the effect of AMP's spin-off from American Express Co. (AXP), which was completed Sept. 30, 2005. The loss of the American Express brand could affect the group's ability to continue to attract and retain high quality financial advisors, the primary distribution channel. This in turn could affect AMP's position in its highly competitive core markets. Fitch anticipates, however, that stability will be enhanced by the fact that top management and the business model have transferred to the new organization largely intact.

Proceeds from the new debt will be used to pay off bridge financing, which was used to pay off inter-company debt as part of the spin-off. AMP's proforma financial leverage is moderate at 16.9%. No additional debt issuance is planned over the near term. AMP's ability to service debt is considered strong with proforma GAAP EBIT coverage in the 9 times (x) to 10x range and statutory interest coverage (maximum statutory dividend capacity divided by interest expense) of approximately 5x.

Ameriprise Financial, Inc. (AMP) is a publicly traded holding company formed as a result of the spin-off by American Express Co. (AXP) of its insurance, financial planning, asset management and brokerage businesses on Sept. 30, 2005. AMP had approximately $92 billion in consolidated GAAP assets and shareholders' equity of $7.8 billion at the end of the third quarter.

Fitch assigns the following rating to Ameriprise's senior debt with a Stable Outlook:

Ameriprise Financial, Inc.

-- $1.5 billion senior notes due 2010 and 2015 'A-';

-- $50,000,000 6.63% senior notes due Feb. 15, 2006 'A-'.

Fitch also affirms the following ratings with a Stable Outlook:

Ameriprise Financial, Inc.

-- Long-term issuer 'A-'.

The following 'AA-' insurer financial strength (IFS) ratings are also affirmed with a Stable Outlook:

-- IDS Life Insurance Co.;

-- IDS Life Insurance Co. of New York;

-- American Enterprise Life Ins. Co.;

-- American Centurion Life Assurance Co.;

-- American Partners Life Ins. Co..

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.