Fitch rates Principal Financial notes A-

Fitch Ratings said it assigned an A- rating to Principal Financial Group, Inc.'s recent issuance of $300 million of 10-year 3.3% senior unsecured notes and $300 million of 30-year 4.625% senior unsecured notes.

The company's long-term issuer default rating is unaffected by this action, the agency said.

The notes are guaranteed by the company's intermediate holding company, Principal Financial Services, Inc., of which the organization's primary operating companies are wholly owned subsidiaries, Fitch said.

The proceeds will be used to help fund Principal Financial's ongoing growth, which is expected to be achieved both organically and through moderately sized acquisitions, the agency said.

The proceeds will be used to fund the repayment of its $400 million of senior unsecured notes due in May 2014.

Fitch said it does not expect the issuance of the new senior debt to result in an increase in the company's financial leverage ratio above the rating trigger of 25%.

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