S&P rates Principal Financial notes BBB+

Standard & Poor's said it assigned a 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.

The proceeds will be used for general corporate purposes, which may include repaying $400 million in higher-coupon debt outstanding due in 2014, funding potential acquisitions and organic growth.

The company has a counterparty credit rating of BBB+ and a stable outlook.

The company reported strong pretax operating earnings and had a satisfactory debt leverage ratio of 21% and a total financial leverage ratio of 27% relative to the ratings, S&P said.

Given the company's strong earnings generation, EBIT fixed-charge coverage was a healthy 6.1x for the first six months of the year, the agency said.

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