OLDWICK, N.J., March 13, 2024–(BUSINESS WIRE)–AM Best has assigned a Long-Term Issue Credit Rating of “bbb” (Good) to the $1 billion, 6.5% fixed to fixed reset rate junior subordinated notes, due March 15, 2054, of Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Prudential and its subsidiaries remain unchanged.

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The proceeds from this debt issuance are expected to be used for general corporate purposes, which may include repurchasing all of PrudentialÔÇÖs $1.0 billion, 5.375% fixed to floating rate junior subordinated notes due in 2045 and callable in 2025. The impact on PrudentialÔÇÖs debt leverage is expected to elevate slightly higher over the medium term as a higher leverage ratio will be realized prior to the note redemption before decreasing to the mid-to-high 20% range, and the interest coverage with this debt issue is expected to remain favorable. PrudentialÔÇÖs liquidity position is strong, with the parent company holding highly liquid assets of $4.1 billion at year-end 2023. The companyÔÇÖs full-year 2023 pre-tax adjusted operating income was $5.5 billion; however, on a net basis, the company reported gains of $2.5 billion. In its most recent disclosure, a primary driver of full-year 2023 results, is derived by both its U.S. business and international business segments, as well as PrudentialÔÇÖs global asset management business (PGIM,), which added approximately $700 million of fee based pre-tax earnings.

This press release relates to Credit Ratings that have been published on AM BestÔÇÖs website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM BestÔÇÖs Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of BestÔÇÖs Credit Ratings, BestÔÇÖs Performance Assessments, BestÔÇÖs Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of BestÔÇÖs Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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