TEXT-S&P rates Principal Financial's notes 'BBB+'
Sept 5 - Standard & Poor's Ratings Services said today that it assigned its 'BBB+' rating to Principal Financial Group Inc.'s issuances of $300 million of senior unsecured notes due in 2022 and $300 million of senior unsecured notes due 2042. Principal will use the proceeds for general corporate purposes, which may include repaying $400 million in higher-coupon debt outstanding due in 2014, funding potential acquisitions, and organic growth. As of June 30, 2012, Principal Financial Group Inc. reported total assets of $152.1 billion and total shareholders' equity of $9.4 billion. The company reported strong pretax operating earnings, excluding realized gains and losses, of $518.6 million for the first six months of the year, producing a return on assets of 0.69%. As of June 30, 2012, Principal Financial had a satisfactory debt leverage ratio of 21% and a total financial leverage ratio of 27% relative to the rating level. Given the company's strong earnings generation, EBIT fixed-charge coverage was a healthy 6.1x for the first six months of the year. Post issuance, Principal Financial Group will have a debt leverage ratio of 23%, total financial leverage ratio of 28%, and fixed-charge coverage of 6.0x. RELATED CRITERIA AND RESEARCH Holding Company Analysis, June 11, 2009 RATINGS LIST Principal Financial Group Inc. Counterparty Credit Rating BBB+/Stable/-- New Rating Principal Financial Group Inc. $300 Mil. Sr. Unsec. Notes Due 2022 BBB+ $300 Mil. Sr. Unsec. Notes Due 2042 BBB+ Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
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