A.M. Best Assigns Debt Ratings to Prudential Financial, Inc.OLDWICK, N.J. -- A.M. Best Co. has assigned debt ratings of "a-" to Prudential Prudential is the name of two different companies and buildings named after them: Companies:
See: New York Stock Exchange : PRU PRU Prudential Financial PRU Pupil Referral Unit PRU Photographic Reconnaissance Unit PRU Potomac Rugby Union (Washington, DC) PRU Provincial Reconnaissance Unit PRU Projets de Rénovation Urbaine PRU Pruhonice ] recently issued $1.5 billion senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. medium-term notes Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. and $3.0 billion floating rate convertible senior notes. The outlook for these ratings is stable. The financial strength and issuer credit ratings of Prudential and its life/health subsidiaries are unchanged. Prudential intends to utilize the proceeds from the $1.5 billion medium-term notes to pay down short-term borrowings at the holding company. Proceeds from the convertible note offering are expected to be used to purchase a high quality duration matched investment portfolio, to fund the operating needs of subsidiaries and to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to $269 million of the company's common stock. As such, Prudential's financial leverage is not expected to increase meaningfully. The ratings reflect Prudential's diverse business mix, prominent market position, positively trending operating results and strong financial discipline. Additionally, the ratings recognize Prudential's considerable financial flexibility, diverse sources of revenues and earnings and global market presence. While total leverage--both financial and operating leverage--has increased in recent years, Prudential maintains strong fixed charge coverage and an excellent liquidity profile. A.M. Best notes that its financial leverage and interest coverage ratios remain within expectations for its current ratings. The following debt ratings have been assigned: Prudential Financial, Inc.-- -- "a-" on $3.0 billion floating rate convertible senior unsecured notes, due 2037 -- "a-" on $750 million 6.00% senior unsecured medium-term notes, due 2017 -- "a-" on $750 million 6.625% senior unsecured medium-term notes, due 2037 For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion