Ameriprise’s investment portfolio remains relatively conservative, maintaining a net unrealized gain position of approximately $1.7 billion as of June 30, 2011. Despite the fact that the company’s exposure to the commercial real estate market remains relatively high (with non-agency commercial mortgage-backed securities and direct commercial loans representing roughly 150% of statutory capital and surplus) A.M. Best acknowledges that Ameriprise’s direct commercial loan portfolio has performed well in recent periods with only one delinquent loan of more than 60 days as of June 30, 2011. In addition, its commercial mortgage-backed securities are concentrated primarily in the senior most tranches.While Ameriprise’s main business segments, including Asset Management, Advice and Wealth Management, Annuities and Protection have all performed well recently, the company’s earnings remain highly correlated to the performance of the equity markets. As a result, earning trends may be impacted by fluctuating equity valuations and will be susceptible to further volatility in the financial markets. The Ameriprise P&C Companies’ ratings are based on the consolidated operating results and financial positions of IDS and its subsidiary and reflect their synergies with Ameriprise. In addition, the ratings take into account the group’s solid risk-adjusted capital position and favorable trend of operating results. The following debt ratings have been affirmed: Ameriprise Financial, Inc.—-- “a-” on $700 million 5.65% senior unsecured notes, due 2015-- “a-” on $300 million 7.30% senior unsecured notes, due 2019-- “a-” on $750 million 5.35% senior unsecured notes, due 2020-- “a-” on $200 million 7.75% senior unsecured notes, due 2039-- “bbb” on $500 million 7.518% junior subordinated notes, due 2066 The following indicative shelf ratings have been affirmed: Ameriprise Financial, Inc.—-- “a-” on senior unsecured debt-- “bbb+” on subordinated debt-- “bbb” on preferred stock Ameriprise Capital Trust I, II, III and IV—-- “bbb” on trust preferred securities The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “A.M. Best Ratings & the Treatment of Debt”; “Understanding BCAR for Life and Health Insurers”; “Understanding BCAR for Property/Casualty Insurers”; “ Natural Catastrophe Stress Test Methodology”; “ Catastrophe Analysis in A.M. Best Ratings”; and “ Rating Members of Insurance Groups.” Methodologies can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.