Nov 15 - Standard & Poor's Ratings Services said today that it has assigned its 'BBB+'
junior subordinated debt rating to Prudential Financial Inc.'s (PRU; A/Stable/A-1) $1.5
billion of fixed-to-floating-rate junior subordinated notes due 2043.
The notes are rated two-notches below our issuer credit rating on PRU,
reflecting one notch for optional deferral and one notch for subordination to
senior indebtedness, consistent with our hybrid ratings criteria. We will
treat the notes as intermediate-equity content hybrids in our analysis because
the notes allow optional deferral for up to five years, are subordinate to
PRU's senior indebtedness, and have more than 20 years remaining to maturity.
Consistent with our criteria, we will treat the notes as minimal
equity-content hybrids when they have fewer than 20 years remaining until
maturity, and as debt in our analysis at that time.
The issuer credit rating on PRU is two notches lower than the ratings on its
core operating companies. (Typically, the rating on a holding company is a
full category, or three notches, below the ratings on the operating
companies.) The nonstandard notching reflects PRU's diverse sources of
earnings and liquidity, as well as its strong fixed-charge coverage.
RELATED CRITERIA AND RESEARCH
-- Holding Company Analysis, June 11, 2009
-- Hybrid Capital Handbook: September 2008 Edition, Sept. 15, 2008
Prudential Financial Inc.
Counterparty Credit Rating A/Stable/A-1
$1.5 Bil. Jr. Sub. Notes due 2043 BBB+