Fitch rates Prudential notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Prudential Financial Inc.'s recent issuance of $1 billion of senior notes, which included its $500 million of 4½% senior notes due Nov. 15, 2020 and $500 million of 6.2% senior notes due Nov. 15, 2040.

The outlook is stable.

The two issuances of $500 million each will be used as part of the funding for the company's planned acquisition of two Japanese subsidiaries of American International Group, Fitch said.

This debt issuance was anticipated in the company's recent one-notch upgrade of its long-term issuer default rating to A- and the affirmation of its

The ratings reflect reduced reliance on short-term debt and reduced overall leverage, improved earnings, strong statutory capitalization and improved investment results, Fitch said.

The agency also said it views positively the diversification of the company's earnings and cash flows from domestic insurance, international insurance and asset management.

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