(The following statement was released by the rating agency)
NEW YORK, March 11 (Fitch) Fitch Ratings has assigned a 'BBB-'
Prudential Financial, Inc.'s (PFI) issuance of $650 million of
subordinated notes due in 2053.
KEY RATING DRIVERS
The rating is equivalent to the ratings assigned to PFI's
subordinated notes, and reflects standard notching based on
Fitch expects proceeds from the debt issuance to be used
primarily to refinance
outstanding retail hybrids, so this is not viewed as an increase
leverage. PFI's financial leverage ratio (FLR) was 35% at
year-end 2012. Based
on Fitch's rating criteria, this hybrid debt issuance has not
been assigned any
Fitch last reviewed and affirmed PFI's ratings on Dec. 5, 2012.
of PFI's ratings reflects Fitch's view that the company's recent
performance and balance sheet fundamentals remain consistent
expectations. The Outlook for all ratings is Stable.
Key rating triggers that could result in an upgrade of PFI's
holding company ratings are: continued reduced reliance on
progress reducing the financial leverage ratio to the mid-20%
range and total
leverage below 40%; GAAP interest coverage in the 8x-10x range
(based on pre-tax
adjusted operating earnings); stated NAIC RBC ratio remaining
levels; and Japan solvency margin ratio above 700%.
Key rating triggers that could result in a downgrade of PFI's
ratings (i.e. wider notching from the operating company)
include: an FLR above
35%; outstanding CP above 10% of total debt on a sustained
basis; a TFC above
1.5x; and/or a GAAP interest coverage ratio below 5x.
Triggers that could result in a downgrade of both operating and
ratings include: a stated NAIC RBC ratio below 400%, and Japan
ratio below 600%, as well as a more significant breach of the
holding company triggers.
Fitch has assigned the following rating:
Prudential Financial, Inc.
--5.70% junior subordinated notes due 2053 'BBB-'
Cynthia J. Crosson
Fitch Ratings, Inc.
One State Street Plaza
New York, New York 10004
Douglas L. Meyer, CFA
Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549,
Additional information is available at 'www.fitchratings.com'.
The ratings above
were solicited by, or on behalf of, the issuer, and therefore,
Fitch has been
compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Insurance Rating Methodology, Jan. 11, 2013.
Applicable Criteria and Related Research
Insurance Rating Methodology â€” Amended
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