AM Best Assigns Issue Credit Rating to Prudential Financial, Inc.’s New Junior Subordinated Notes

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb” (Good) to the $750 million, 6.25% fixed rate junior subordinated notes, due 2056, of Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU]. At the same time AM Best has assigned a Long-Term IR of “aa-” (Superior) to the $450 million, 5% medium term notes, due 2031, of PRICOA Global Funding I. The outlook assigned to these Credit Ratings (ratings) is stable.

The proceeds of the junior subordinated notes issuance are expected to be used for general corporate purposes, which may include repurchasing all of Prudential’s $750 million, 4.5% fixed to floating rate junior subordinated notes, due 2047, and callable in 2027. Following the issuances, the adjusted financial leverage at Prudential stands at 25.6%, as calculated by AM Best, which includes 45% equity credit. Interest coverage is considered adequate. Liquidity remains strong with $3.7 billion in highly liquid assets at the parent company level as of March 31, 2026.

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