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
AM Best has assigned a Long-Term Issue Credit Rating of “bbb” (Good) to the $1 billion, 6.5% fixed to fixed reset rate junior subordinated notes, due March 15, 2054, of 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.
The proceeds from this debt issuance are expected to be used for general corporate purposes, which may include repurchasing all of Prudential’s $1.0 billion, 5.375% fixed to floating rate junior subordinated notes due in 2045 and callable in 2025. The impact on Prudential’s debt leverage is expected to elevate slightly higher over the medium term as a higher leverage ratio will be realized prior to the note redemption before decreasing to the mid-to-high 20% range, and the interest coverage with this debt issue is expected to remain favorable. Prudential’s liquidity position is strong, with the parent company holding highly liquid assets of $4.1 billion at year-end 2023. The company’s full-year 2023 pre-tax adjusted operating income was $5.5 billion; however, on a net basis, the company reported gains of $2.5 billion. In its most recent disclosure, a primary driver of full-year 2023 results, is derived by both its U.S. business and international business segments, as well as Prudential’s global asset management business (PGIM,), which added approximately $700 million of fee based pre-tax earnings.
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.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Wayne Kaminski
Associate Director
+1 908 882 1916
wayne.kaminski@ambest.com
Michael Porcelli
Senior Director
+1 908 882 2250
michael.porcelli@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20240313188860/en/
-
5 Undervalued Stocks to Buy to Play a Little Defense
-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
After Earnings, Is GE Aerospace Stock a Buy, a Sell, or Fairly Valued?
-
3 Good Stocks to Buy with Your Tax Refund in 2024 (Or with Any Extra Money)
-
SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year