AM Best Assigns Issue Credit Rating to Prudential Financial, Inc.’s Senior Unsecured Medium-Term Notes

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to the $750 million, 5.2% senior unsecured medium-term notes, due 2035, issued by Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Prudential and its subsidiaries remain unchanged.

Prudential intends to use the net proceeds from the sale of the notes for general corporate purposes, which may include refinancing its medium-term notes maturing through 2026. The impact on the company’s debt leverage is expected to elevate slightly higher over the medium term as a higher leverage ratio will be realized prior to the maturity of medium-term notes through 2026. Financial leverage is expected to decline slightly back to pre-issuance levels. Prudential’s interest coverage ratio is expected to remain favorable. Prudential’s liquidity position is strong, with the parent company holding highly liquid assets of $4.6 billion at year-end 2024. The company’s full-year 2024 pre-tax adjusted operating income was $5.9 billion; however, on a net basis, the company reported income attributable to PFI of $2.7 billion. In its most recent disclosure, a primary driver of full-year 2024 results is derived by both its U.S. business and international business segments, as well as Prudential’s global asset management business, which added approximately $875 million in fee-based pre-tax earnings.

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