Fitch affirms Prudential

Fitch Ratings said it affirmed the BBB+ issuer default rating and BBB senior debt ratings of Prudential Financial Inc. upon news that the company plans to acquire two Japanese life insurance companies from American International Group (AIG) for $4.8 billion.

Fitch also said it affirmed the A+ insurer financial strength ratings of Prudential Insurance Co. of America and all of the group's ratings.

The outlook is stable.

Fitch said it believes the acquisition of AIG Star Life Insurance Co. Ltd. and AIG Edison Life Insurance Co., which is expected to close in the first quarter of 2011, will strengthen the company's already strong position in the Japanese life insurance market.

Mortality-based earnings in Japan are already the most important source of earnings for Prudential Financial, helping to offset the impact of equity market volatility related to variable annuities in the U.S. operations, the agency said.

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