A.M. Best notes that Ameriprise's earnings remain highly correlated to movements in interest rates and equity markets. More than two-thirds of Ameriprise's admitted assets are in separate accounts that are susceptible to sizable equity market declines. Earnings also are likely to be materially impacted should the current low interest rate environment persist, particularly in the fixed annuity and long-term care insurance lines of business. In addition, Ameriprise may continue to experience net outflows in its annuity and asset management businesses due to the ongoing volatility in the financial markets. Although A.M. Best remains concerned with the potential earnings volatility, this concern is somewhat mitigated by Ameriprise's robust ERM practices that measure its key risks to ensure decisions are made that will enhance its overall business profile and performance.The ratings of IDS and its reinsured subsidiary, Ameriprise Insurance Company, are based on the consolidated operating results and financial positions that reflect their contribution to Ameriprise through diversification of risks and earnings, expanded product offerings to affinity partners and tax benefits from their municipal bond portfolio. However, operating performance has declined over the most recent five-year period, necessitating strong capital infusions to maintain the companies' risk-adjusted capitalization. The companies reported overall operating losses primarily due to deteriorating underwriting performance as a result of adverse prior-year loss reserve development and weather-related catastrophic losses that exceeded the company's projections. The following Long-Term IRs have been affirmed: Ameriprise Financial, Inc.— -- "a-" on $300 million 7.30% senior unsecured notes, due 2019 -- "a-" on $750 million 5.35% senior unsecured notes, due 2020 -- "a-" on $750 million 4.00% senior unsecured notes, due 2023 -- "a-" on $550 million 3.70% senior unsecured notes, due 2024 -- "a-" on $500 million 2.875% senior unsecured notes, due 2026 The following indicative Long-Term IRs have been affirmed under the current shelf registration:
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 This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings . A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.