S&P: Prudential notes A

Standard & Poor's said it assigned A senior debt ratings to Prudential Financial Inc.'s $500 million 3% medium-term notes series D due 2016 and $300 million 5.625% medium-term notes series D due 2041.

The ratings reflect an A counterparty credit rating on Prudential, which reflects a nonstandard two-notch gap from the core insurance operating company ratings, S&P said.

Typically, the credit rating on a holding company is a full rating category below the ratings on the operating companies, the agency said. The nonstandard notching reflects the company's diverse sources of earnings from regulated U.S. and international insurance operations, S&P said, as well as asset management subsidiaries, which are largely unrestricted.

The ratings reflect the group's very strong competitive positions in the United States and Japan and its financial flexibility and the group's diverse sources of earnings, the agency said.

Partially offsetting these strengths are earnings and capital sensitivity to equity market performance and the exposure to potential investment losses, S&P added.

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