NEW YORK (Associated Press) - Standard & Poor's Ratings Services raised the counterparty credit rating on Ameriprise Financial Inc., noting the financial services firm's solid balance sheet, diversified business and strong cash flows.

S&P said late Thursday it raised the investment-grade rating one notch to "A" from "A-." At the same time, S&P affirmed its "AA-" counterparty credit and financial strength ratings on Ameriprise's life insurance subsidiaries. A rating of "AA-" is considered investment grade.

The outlook is stable.

S&P expects client and adviser retention to remain strong at the company's RiverSource Life Group, despite modest challenges from the current economic downturn. Liquidity is a challenge, given the insurance company liability profile, but should nevertheless be sufficient for the rating, S&P said.

Ameriprise shares fell 67 cents to $38.63 in midday trading.