A.M. Best has assigned indicative ratings of “a-” to senior unsecured debt, “bbb+” to subordinated debt and “bbb” to preferred shares of the recently filed universal shelf registration of Principal Financial Group, Inc. (Principal) (Des Moines, IA) [NYSE: PFG]. The outlook assigned is stable. The new shelf registration replaces Principal’s previous shelf, which expires in late May 2014. Consequently, A.M. Best has withdrawn the ratings for the previous shelf registration. All remaining ratings of Principal and its subsidiaries are unchanged. (For further information, please see A.M. Best’s press release dated December 10, 2013.)
As of March 31, 2014, Principal’s debt-to-capital and interest coverage ratios were well within A.M. Best’s guidelines for its current rating level. Principal’s current ratings reflect its good financial flexibility as well as the organization’s diversified operating earnings, record assets under management and positive net flow. The ratings also reflect the continued performance improvement in Principal’s investment portfolio.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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