Moody's rates Prudential notes

Moody's Investors Service said it assigned a Baa2 debt rating to the $1 billion of fixed-rated senior notes issued by Prudential Financial, Inc.

The outlook is stable.

The agency said that half of the notes will mature in November 2020 and half in November 2040. The proceeds will be used to fund the $4.2 billion acquisition of AIG Star Life Insurance Co. Ltd. and AIG Edison Life Insurance Co.

The Star/Edison acquisition further strengthens Prudential's market presence in Japan, diversifying its business mix away from the U.S. life insurance market, Moody's said.

In terms of the funding mix, Moody's noted that while the transaction uses up some of the company's excess capital and increases leverage slightly, Prudential remains well capitalized.

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