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.
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