AM Best Assigns Issue Credit Rating to Principal Financial Group, Inc.’s New Senior Secured Notes

OLDWICK, N.J.--()--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.

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 Guide to 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 credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Louis Silvers
Senior Financial Analyst
+1 908 439 2200, ext. 5802
louis.silvers@ambest.com

Michael Porcelli
Director
+1 908 439 2200, ext. 5548
michael.porcelli@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

Louis Silvers
Senior Financial Analyst
+1 908 439 2200, ext. 5802
louis.silvers@ambest.com

Michael Porcelli
Director
+1 908 439 2200, ext. 5548
michael.porcelli@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com