OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has assigned a Long-Term Issue Credit Rating of “a-” to
the $500 million, 3.70%, 10-year senior unsecured notes, due May 2029,
issued by Principal Financial Group, Inc. (Principal) (headquartered in
Des Moines, IA) [NASDAQ: PFG]. The outlook assigned to the Credit Rating
(rating) is positive. All other ratings of Principal and its
subsidiaries are unchanged.
The proceeds of the issuance will be used to support Principal’s
acquisition of Wells Fargo’s Institutional Retirement and Trust
business, announced on April 9, 2019. AM Best notes that there is a
modest increase in the organization’s financial leverage as a result of
the issuance, but leverage remains within guidelines for the current
ratings. Additionally, Principal’s interest coverage metrics decline
slightly, but remain strong.
This press release relates to Credit Ratings that have been published
on AM 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 AM 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. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Keith Behrmann, CFA, ChCF, CAIA, CLU
Senior Financial
Analyst
+1 908 439 2200, ext. 5733
[email protected]
Ken Johnson, CFA, CAIA, FRM
Senior Director
+1
908 439 2200, ext. 5056
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
