S&P affirms Ameriprise

Standard & Poor's said it affirmed the A counterparty credit rating on Ameriprise Financial Inc.

The outlook remains negative.

The affirmation follows Ameriprise's agreement to purchase Columbia Management's long-term mutual fund business.

"In our opinion, the addition of the Columbia Management business will add scale to Ameriprise's asset-management business, bringing its total global assets under management to nearly $400 billion," S&P analyst Ovadiah Jacob said in a statement.

"Moreover, synergies between the two businesses should allow Ameriprise to improve the profitability of its asset-management business and enhance the stability to the earnings stream."

Ratings are based on Ameriprise's very strong controlled distribution network, top 10 market positions in retail variable annuities and variable universal life insurance, a global asset-management platform with a focus in the United States and the United Kingdom, and very strong capitalization and investments, the agency said.

Partially offsetting these strengths are the reduced level of operating performance primarily because of equity market declines as well as the ongoing sensitivity of Ameriprise's earnings to equity markets and investor activity, the agency noted.

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