S&P Rates Princpl Life Glbl Fndg I's $350M Notes `AA'.Business Editors NEW YORK--(BUSINESS WIRE)--Standard & Poor's Feb. 22, 2001-- Standard & Poor's today assigned its double-'A' rating to Principal Life Global Funding I's (PLGF PLGF Placental Growth Factor ) $350 million Series 01 notes. The rating on the notes is based on a funding agreement Funding Agreement Illiquid insurance contracts that provide guaranteed principal repayment and interest payments for a predetermined period of time. Notes: Funding agreements are marketed to mutual fund companies and municipal reinvestments. issued by Principal Life Insurance Co. (PLIC PLIC Piecewise Linear Interface Calculation PLIC Pseudolikelihood Information Criterion PLIC Piecewise Linear Interface Reconstruction PLIC Partitioned Linear Interference Canceler PLIC Provincial Land Information Council PLIC Progressive Lossless Image Coding ) securing the notes and reflects PLIC's financial strength (double-'A' counterparty credit rating with a stable outlook). The Series 01 notes are the first issuance of obligations secured by funding agreements provided by PLIC to be sold in the U.S. The current EMTN EMTN Euro Medium-Term Note programs do not typically allow for notes to be sold in the U.S. or to be purchased by U.S. investors. The issuance of the notes represents PLGF's entry into the global note structured guaranteed investment contract Guaranteed investment contract (GIC) A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the investment. market. Under the terms of this transaction, PLIC has indirectly sold a funding agreement to PLGF that corresponds to the $350 million in notes. PLGF has assigned the funding agreement to a trustee for the benefit of the investors. Payments on the notes are provided by the cash flow of the corresponding funding agreement. PLGF is a statutory business trust created under Delaware law. Standard & Poor's has reviewed the structure of PLGF and determined that it meets Standard & Poor's criteria for special-purpose vehicles and that the trust has been appropriately structured to provide a security interest to the investors. Standard & Poor's has also reviewed the structure and documents in conjunction with the development of the issuance. Domiciled in Iowa, PLIC is one of the larger U.S. life insurance companies. PLIC has a diversified business profile, with an excellent position in the small- to medium-sized group pension business. Through Principal Financial Global Funding LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and PLGF, PLIC has sold funding agreements in excess of $3.4 billion. PLIC maintains sound asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. practices and has a favorable track record regarding its investment portfolio. Earnings at PLIC are considered strong and have been improving, Standard & Poor's said. --CreditWire |
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