Moody's cuts Principal Financial

Moody's Investors Service said it downgraded the senior debt ratings of Principal Financial Group, Inc. and its intermediate holding company Principal Financial Services, Inc. to A3 from A2.

The outlook is negative.

The action was prompted by greater pressure on the company's flexibility and liquidity as a result of the continuing capital market illiquidity and the increasingly stressful operating environment, as well as expectations of higher asset losses and weaker earnings in the worsening economic environment, according to the agency.

Moody's said that unfavorable capital market conditions have constricted the company's ability to issue new debt or hybrid securities to refinance short-term corporate debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.