AM Best Assigns Issue Credit Ratings to Prudential Financial Inc.’s New Junior Subordinated Notes
August 21 2020 - 9:36AM
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.
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.
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Edward Kohlberg Director +1 908 439 2200, ext.
5664 edward.kohlberg@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Michael Porcelli, FSA Director +1 908 439 2200,
ext. 5548 michael.porcelli@ambest.com
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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