OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “a” to the $500 million, 2.125%, 10-year senior secured notes, due June 2030, issued by Principal Financial Group, Inc. (Principal) (headquartered in Des Moines, IA) [NASDAQ: PFG]. The outlook assigned to the Credit Rating (rating) is stable.
Principal intends to use the proceeds for general corporate purposes, to take advantage of attractive market conditions and to strengthen financial flexibility. AM Best notes that proforma financial leverage and interest coverage metrics remain at appropriate levels.
The ratings of Principal’s Long-Term Issuer Credit Rating (Long-Term ICR), its existing Long-Term IRs and the Long-Term ICRs of its operating insurance subsidiaries were upgraded with a stable outlook on February 11, 2020 (see related press release), and remain unchanged following this issuance of the preferred shares.
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