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.
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