AM Best Assigns Issue Credit Ratings to Prudential Financial, Inc.’s New Senior Unsecured Notes

OLDWICK, N.J.--()--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.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Edward Kohlberg
Director
+1 908 439 2200, ext. 5664
edward.kohlberg@ambest.com

Ken Johnson, CFA, CAIA, FRM
Managing Director
+1 908 439 2200, ext. 5056
ken.johnson@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

Edward Kohlberg
Director
+1 908 439 2200, ext. 5664
edward.kohlberg@ambest.com

Ken Johnson, CFA, CAIA, FRM
Managing Director
+1 908 439 2200, ext. 5056
ken.johnson@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com