OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has assigned a Long-Term Issue Credit Rating of “a-” to the newly issued senior unsecured notes of Prudential Financial, Inc. (PFI) (Newark, NJ) [NYSE: PRU]. The $1.5 billion 3.70% notes due March 13, 2051 were issued under PFI’s medium-term notes program. The outlook assigned to the Credit Rating (rating) is stable. The existing ratings of PFI and its subsidiaries are unchanged.
The proceeds from this debt issuance are expected to be used to pay a portion of the consideration for the previously announced acquisition of Assurance IQ, Inc. and for general corporate purposes, which may include refinancing portions of the company’s medium-term notes maturing through 2020. While AM Best expects this issuance to have a modest short-term negative impact on PFI’s financial leverage and interest coverage ratios, both remain within AM Best’s guidelines for the organization’s current ratings.
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