S&P rates Prudential convertibles A-

Standard & Poor's said it assigned its A- senior unsecured debt rating to Prudential Financial Inc.'s $2 billion floating-rate senior unsecured convertible notes due November 2035.

The rating reflects the company's modest financial leverage, improved level and diversification of cash flows, strong fixed-charge coverage in excess of 15x and strong and stable life insurance operations in Japan, S&P said.

S&P said it believes these proceeds qualify for operating leverage treatment given the discrete nature of the pool of assets, which are segregated from the rest of the issuer's assets and the assets' cash flow strength, which is expected to be sufficient to meet principal and interest on this debt.

This results in an insignificant risk to any of the issuer's other assets to meet such payments, S&P said.

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