A.M. Best Assigns Debt Ratings to Prudential Financial Inc.’s New Senior Unsecured Notes
OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned debt ratings of “a-” to the newly issued senior unsecured notes of Prudential Financial, Inc. (PFI) (Newark, NJ) [NYSE:PRU]. The securities were issued in two tranches: $350 million 2.35% five-year notes and $250 million 4.6% 30-year notes. The five-year notes were issued under PFI’s medium-term note program while the 30-year notes represent a reopening of PFI’s May 15, 2014, $500 million senior unsecured note issuance. The outlook assigned to both ratings is stable. The existing ratings of PFI and its subsidiaries are unchanged.
PFI intends to use the net proceeds from the sale of the debt securities for general corporate purposes, which may include refinancing portions of PFI’s medium-term notes that mature through 2015. While this issuance is expected to have a modest short-term negative impact on PFI’s financial leverage and interest coverage ratios, both remain within A.M. Best’s guidelines for its current ratings. A.M. Best also notes that PFI currently maintains above-average levels of cash resources if needed.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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