OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned Long-Term Issue Credit Ratings of “a-” to the three newly issued senior unsecured notes of Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU]. The six-year $500 million 1.5% note due March 10, 2026, 10-year $500 million 2.1% note due March 10, 2030, and 20-year $500 million 3.0% note due March 10, 2040, were all issued under Prudential’s medium-term note program. The outlook assigned to these Credit Ratings (rating) is stable. The existing ratings of Prudential and its subsidiaries are unchanged.
AM Best expects the proceeds from these debt issuances to be used for general corporate purposes, which include refinancing upcoming debt maturities for 2020 and 2021. The six-year $500 million note is Prudential’s first note to be issued out of its green bond framework. An amount at least equivalent to the net proceeds of the green bond will be allocated exclusively to existing or future investments in or financing of eligible green assets, which are assets, businesses or projects within Prudential’s general account that meet its bond framework eligibility criteria. This bond will support green buildings and renewable energy.
While AM Best expects the debt issuances to have a modest temporary negative impact on Prudential’s financial leverage and interest coverage ratios, both remain within AM Best’s guidelines for the organization’s current ratings. AM Best also notes that Prudential currently maintains above-average levels of cash resources.
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