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

NEW YORK--([ BUSINESS WIRE ])--Fitch Ratings has assigned a 'BBB' rating to Prudential Financial, Inc.'s (NYSE: PRU) recent issuance of $350 million of 6.625% 30-year senior notes and $650 million of 5.375% 10-year senior notes. The Rating Outlook is Stable. PRU's other ratings are not affected by this rating action. A complete list of ratings follows at the end of this release.

Following the recent issuance, PRU's leverage and coverage on a pro forma basis are expected to remain in line with the current rating. Equity-adjusted leverage for the Financial Services Business was 21.9% as of March 31, 2010. PRU's total financing and commitment ratio (TFC) remains in the 1.3 to 1.4 range, which is in line with the full-year 2009 ratio but is high relative to the large stock company peer average of 1.07, excluding goodwill. Proceeds from the debt issuance are expected to be used for general corporate purposes.

Fitch has assigned a 'BBB' rating to the following issuances with a Stable Outlook:

Prudential Financial, Inc.

-- $350 million of 6.625% senior notes maturing June 21, 2040;

-- $650 million of 5.375% senior notes maturing June 21, 2020.

The following ratings are unaffected by today's rating actions:

Prudential Financial, Inc.

-- Long-term Issuer Default Rating (IDR) 'BBB+';

-- Senior notes 'BBB';

-- Junior subordinated notes 'BBB-';

-- Short-term IDR 'F2';

-- Commercial paper 'F2'.

Prudential Insurance Company of America

-- Insurer Financial Strength (IFS) 'A+';

-- Long-term IDR 'A';

-- Surplus notes 'A-';

-- Short-term IDR 'F1'.

Prudential Funding, LLC

-- Medium-term notes 'A';

-- Commercial paper 'F1'.

PRICOA Global Funding I

-- Secured notes program 'A+'.

PRUCO Life Insurance Company

Prudential Annuities Life Assurance Corp.

Prudential Retirement Insurance & Annuity Company

PRUCO Life Insurance Company of New Jersey

-- IFS 'A+'.

Prudential Bank & Trust, FSB

-- Long-term IDR 'BBB+';

-- Long-term deposit 'A-';

-- Short-term IDR 'F2';

-- Short-term deposit 'F1';

-- Individual 'B/C';

-- Support '1'.

These rating actions reflect the application of Fitch's current criteria which is available '[ www.fitchratings.com ]' and specifically include the following reports:

-- 'Insurance Rating Methodology, Global Master Criteria' (Dec. 29, 2009);

-- 'Life Insurance Rating Methodology (Global)' (March 24, 2010);

-- 'Total Financing and Commitment Ratio (TFC) for Insurance Organizations' (May 21, 2010).

Additional information is available '[ www.fitchratings.com ]'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: [ HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS ]. 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.

Contributing Sources

Market Wire

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