AM Best Assigns Issue Credit Rating to Principal Financial Group, Inc.’s New Senior Unsecured Notes
OLDWICK, N.J.--(BUSINESS WIRE)--May 8, 2019--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.
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KEYWORD: UNITED STATES NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE
SOURCE: AM Best
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PUB: 05/08/2019 09:16 AM/DISC: 05/08/2019 09:16 AM