STANDARD & POOR'S AFFIRMS PRUDENTIAL SECURITIES' RATING; "LONG-TERM OUTLOOK STABLE"
NEW YORK, Nov. 23 /PRNewswire/ -- Prudential Securities Incorporated, the fourth largest securities firm in the U.S., said today that Standard & Poor's Corp. has affirmed its rating of A+ /A1, following the firm's recent settlement with the SEC, NASD, and state securities regulators concerning the sales of limited partnerships in the 1980s. S&P also affirmed the A/A1 rating of the firm's holding company, Prudential Securities Group Inc. The S&P announcement comes two weeks after another top credit rating agency, BankWatch, affirmed PSI's top rating. S&P said that the long-term rating outlook of the firm, "remains stable" and that Prudential Securities "has sufficient financial resources: to meet its commitments" under the settlement. The firm will create an initial fund of $330 million to settle the valid claims of investors who purchased limited partnerships that were unsuitable or improperly marketed in the 80's. S&P stated that "the firm's fundamental operating performance has recovered from the heavy losses of the 1980's" and that "the earnings rebound reflects the restructuring of Prudential Securities' business strategy to focus on the retail brokerage and mutual fund markets, both of which have a benefited from a favorable operating environment during the past two years." Prudential Securities Incorporated is a fully diversified global securities firm based in New York City. Serving clients in the U.S. and overseas through approximately 6,000 financial advisors, Prudential Securities is a subsidiary of The Prudential Insurance Company of America. -0- 11/23/93 /CONTACT: William J. Ahearn of Prudential Securities, 212-214-3955/
CO: Prudential Securities Inc. ST: New York IN: FIN SU: RTG
TM -- NY067 -- 7402 11/23/93 16:25 EST
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|Date:||Nov 23, 1993|
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