August 13, 2014 / 9:27 PM / in 3 years

Fitch Rates Prudential Financial Inc.'s Senior Debt 'BBB+'

(The following statement was released by the rating agency) CHICAGO, August 13 (Fitch) Fitch Ratings has assigned a 'BBB+' rating to $600 million of senior unsecured notes issued by Prudential Financial, Inc. (PFI). The Rating Outlook for PFI is currently Positive. KEY RATING DRIVERS The ratings are equivalent to the ratings assigned to PFI's existing senior unsecured notes, and reflect standard notching based on Fitch's rating criteria. Fitch expects proceeds from the debt issuance to be used for general corporate purposes including funding debt maturing in 2015. As a result, Fitch's view of financial leverage is not impacted by this issuance. PFI's balance sheet fundamentals remain consistent with rating expectations, and recent financial performance has been strong. The ratings assigned to PFI and its subsidiaries continue to reflect the company's very strong competitive position in the U.S. and Japanese life insurance markets. The Positive Outlook reflects PFI's improved operating and earnings profile, which has benefited from recent acquisitions and improved market conditions. Recent financial performance has exceeded rating expectations, and has led to a material improvement in key credit metrics associated with interest coverage. Fitch expects PFI's ability to sustain recent improvement in financial performance, and progress on reducing financial leverage could lead to an upgrade within the next 12-24 months. RATING SENSITIVITIES Key rating triggers that could result in an upgrade include: --Reduction in financial leverage to 28% or below; --GAAP interest coverage remaining in the 8x-10x range (based on pre-tax adjusted operating earnings); --Stated NAIC RBC ratio remaining near current levels; --TFC ratio at or below 1.3X; --Japan's solvency margin ratio remaining above 700%; --No deterioration in the creditworthiness of PFI's Japan business. Triggers that could result in a downgrade include: --Financial leverage above 35%; --Total financing and commitments ratio above 1.5x; --GAAP interest coverage ratio below 5x; --Stated NAIC RBC ratio below 400%; --Japan's solvency margin ratio below 600%. Fitch has assigned the following rating: Prudential Financial, Inc. --$350 million of 2.35% senior notes due 2019 'BBB+'; --$250 million of 4.60% senior notes due 2044 'BBB+'. Contact: Primary Analyst Douglas L. Meyer, CFA Managing Director +1-312-368-2061 Fitch Ratings, Inc. 70 W. Madison Street Chicago, IL 60602 Secondary Analyst Bradley S. Ellis, CFA Director +1-312-368-2089 Committee Chairperson James Auden Managing Director +1-312-368-3146 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: Additional information is available at ''. Applicable Criteria and Related Research: --'Insurance Rating Methodology, November 2013. Applicable Criteria and Related Research: Insurance Rating Methodology here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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