AM Best Assigns Issue Credit Ratings to Prudential Financial Inc.’s New Junior Subordinated Notes
AM Best Assigns Issue Credit Ratings to Prudential Financial Inc.’s New Junior Subordinated Notes
OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “bbb” to the 30-year, $800 million, 3.7% junior subordinated note, and the 40-year, $500 million, 4.125% junior subordinated note newly issued by Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU]. The outlook assigned to the Credit Ratings (rating) is stable. The existing ratings of Prudential and its subsidiaries are unchanged.
The proceeds from this debt issuance are expected to be used for the redemption of a $575 million, 5.75% coupon junior subordinated note with a 2052 maturity, and a $710 million, 5.70% junior subordinated note with a 2053 maturity. AM Best expects the issuances to have neutral impact on Prudential’s financial leverage following the redemptions, and a positive impact on interest coverage ratios due to lower interest expenses. 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.
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