Moody's rates Ameriprise debt A3

Moody's Investors Service said it assigned an A3 debt rating to the 7.3% senior unsecured notes due June 28, 2019 to be issued by Ameriprise Financial, Inc.

The outlook is negative.

Proceeds are expected to be used to help repay $800 million of debt maturing in November 2010.

"From an analytic perspective, Moody's will not treat these notes as financial leverage as long as the proceeds are set aside to fund the 2010 debt maturity," Moody's vice president Arthur Fliegelman said in a statement.

The A3 senior debt rating reflects the company's productive financial advisor field force characterized by favorable retention, excellent capitalization, low expense structure and broad product depth, the agency said.

The strengths are tempered by the competitive environment for annuity and mutual fund sales, by exposures to investment losses on bonds and residential and commercial mortgages, and by the sensitivity of revenues, reserve and capital requirements to equity market fluctuations, according to the agency.

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