Fitch rates Principal Financial notes A-

Fitch Ratings said it assigned an A- rating to Principal Financial Group, Inc.'s issuances of $350 million 10-year senior unsecured notes and $300 million 30-year senior unsecured notes.

Principal Financial’s long-term issuer default rating also is unaffected by this action.

The notes are guaranteed by Principal Financial Services, Inc., the company’s intermediate holding company.

The proceeds from the new senior unsecured debt issuances will be used to refinance two of the company’s existing debt issuances: $300 million 1.85% notes due November 2017 and $350 million 8.875% notes due May 2019.

The ratings reflect the company's strong capitalization and stable, balanced operating profitability, Fitch said.

The ratings also consider the company’s above-average exposure to commercial real estate through direct mortgages, structured mortgage securities and direct real estate investments, the agency said.

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