S&P: Principal Financial negative

Standard & Poor's said it affirmed its BBB+ counterparty credit ratings on Principal Financial Group Inc. and Principal Financial Services Inc.

At the same time, the agency said it affirmed the A+ counterparty credit and financial strength ratings on Principal Life Insurance Co.

The agency also revised the outlook to negative from stable.

"The outlook revision reflects the group's increased level of financial leverage, reduced fixed-charge coverage ratio and increased capital deficit at PLIC, as measured by our capital model, due to the excess debt double leverage that will be taken on to complete the acquisition of Cuprum and, to a lesser extent, integration risk," said S&P credit analyst Donald Chu in a news release.

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