AM Best Assigns Issue Credit Rating to Prudential Financial Inc.’s New Junior Subordinated Notes
AM Best Assigns Issue Credit Rating to Prudential Financial Inc.’s New Junior Subordinated Notes
OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned Long-Term Issue Credit Rating of “bbb” (Good) to the $1 billion, 5.125% junior subordinated notes, due March 1, 2052, of Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU]. The outlook assigned to the Credit Rating (rating) is stable. All other ratings of Prudential and its subsidiaries are unchanged.
The proceeds from this debt issuance are expected to be used for general corporate purposes, which may include the redemption or repurchase of Prudential’s junior subordinated notes of $1 billion aggregate principal amount, due in 2042. AM Best expects the issuance to have a neutral impact on Prudential’s financial leverage following the redemption, 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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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