Fitch rates Principal Financial debt A-

Fitch Ratings said it assigned an A- rating to Principal Financial Group's $750 million of senior unsecured debt, consisting of a $400 million five-year and a $350 million 10-year tranche.

The outlook remains negative.

Some of the issuance will be used to repay an August $441 million maturing debt issue. Remaining funds will be used for general corporate purposes.

The company holds a favorable operating profile reflecting its strong market position in the employee benefit business, Fitch said.

Principal Financial has strong liquidity and most likely will not need to liquidate assets at depressed prices to fund maturing operating company liabilities, Fitch said.

Operating earnings in the first quarter were hurt by the sensitivity of the asset management and pension businesses to financial market and economic conditions, the agency noted.

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