Fitch Rates Principal Financial Group's Unsecured Notes 'A-'

  Fitch Rates Principal Financial Group's Unsecured Notes 'A-'

Business Wire

CHICAGO -- November 13, 2012

Fitch Ratings has assigned an 'A-' rating to Principal Financial Group, Inc.'s
(PFG) proposed issuance of approximately $800 million of senior unsecured
notes. PFG's long-term Issuer Default Rating is unaffected by this rating
action.

Fitch placed the ratings of PFG and its insurance operating subsidiaries on
Rating Watch Negative on Oct. 9, 2012, following the company's announcement
that it would acquire AFP Cuprum S.A. (Cuprum), a Chilean pension manager, for
consideration of approximately $1.5 billion. The Rating Watch reflects Fitch's
view that financing of the transaction will bring PFG's financial leverage and
coverage to levels near previously articulated downgrade triggers. The notes
being rated today are being issued to fund this acquisition.

The notes are guaranteed by PFG's intermediate holding company, Principal
Financial Services, Inc., of which the organization's primary operating
companies are wholly owned subsidiaries. This includes Principal Life
Insurance Company, PFG's largest insurance operating subsidiary and the source
of the vast majority of the overall organization's operating cash flow.

Following issuance of the notes and near-term refinancing activities, Fitch
expects PFG's financial leverage ratio to settle at a level slightly below
Fitch's rating trigger of 25%. The company's financial leverage was
approximately 21% at Sept. 30, 2012.

PFG, headquartered in Des Moines, IA, markets a range of retirement savings,
investment and insurance products and services primarily in the small- to
medium-sized business segment. PFG reported consolidated assets of $159
billion, and total shareholders' equity of $9.8 billion at Sept. 30, 2012.

Fitch has assigned the following rating:

Principal Financial Group, Inc.

--New senior unsecured notes 'A-'.

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Insurance Rating Methodology' (Oct. 18, 2012);

--'Principal Financial Group' (July 24, 2012).

Applicable Criteria and Related Research:

Insurance Rating Methodology -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=692293

Principal Financial Group, Inc. (And Operating Subsidiaries)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=683073

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Contact:

Fitch Ratings
Primary Analyst
Bradley S. Ellis, CFA
Director
+1-312-368-2089
Fitch, Inc.
70 W. Madison St.
Chicago, IL 60602
or
Secondary Analyst
Bruce E. Cox
Director
+1-312-606-2316
or
Committee Chairperson
Martha L. Butler, CFA
Senior Director
+1-312-368-3191
or
Media Relations:
Brian Bertsch, +1-212-908-0549 (New York)
brian.bertsch@fitchratings.com