AM Best assigns issuance credit ratings to Prudential Financial Inc.’s upcoming junior subordinated notes.

OLDWICK, NJ–(BUSINESS THREAD)–AM Best has assigned a long-term issue credit rating of “bbb” (Good) to the upcoming $1.2 billion 6% junior subordinated notes due September 1, 2052, and to $300 million, 5.95% junior subordinated notes due September 1, 2062, to be issued by Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU]. The outlook assigned to these credit ratings (rating) is stable. The other ratings of Prudential and its subsidiaries remain unchanged.

The proceeds of this debt issuance are expected to be used for general corporate purposes, which may include the repayment or repurchase of Prudential’s $1.5 billion aggregate principal amount of the 2043 Notes. expects the impact on Prudential’s debt leverage to be neutral over the medium term as a higher leverage ratio will be realized prior to the note repayment before declining to the mid-20% range and interest coverage remains favorable. AM Best notes Prudential’s strong liquidity position with approximately $7 billion in cash and liquid assets through June 30, 2022. Also highlighted is Prudential’s Q2 2022 earnings report, in which the update The company’s annual assumption led to a $1.4 billion increase in pretax reserves, primarily in its individual life insurance business. In addition, the strength of its balance sheet is supported by a diversified investment portfolio and strong measures of risk-adjusted capital at its operating companies, which are expected to remain within target levels.

This press release relates to the credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referred to in this release, please see AM Best. Recent assessment activity Web page. For additional information on the use and limitations of credit rating opinions, see Best Credit Ratings Guide. For information on the appropriate use of Best credit ratings, Best performance assessments, Best credit pre-assessments and AM Best press releases, see Guide to proper use of Best ratings and reviews.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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