The counterparty credit rating on Ameriprise Financial Inc. (NYSE:AMP) reflects AMP's strong balance sheet, the large initial funding from the its previous parent, and extremely strong cash coverage because of its stable life insurance and strong asset-management operations, supported by a unique financial advisory distribution channel. These positive factors are somewhat offset by the potential execution risks that come with the spin-off and lack of history as an independent public company. AMP is the recently spun-off holding company of American Express Financial Advisors, previously a division of American Express Co. (NYSE:AXP). The holding company's earnings capacity from subsidiaries is very strong. Compared with its peers, the holding company's cash flows are less restricted because of its sizable asset management business,
