Moody's: Prudential notes Baa3

Moody's Investors Service said it assigned a Baa3(hyb) subordinated debt rating to Prudential Financial Inc.'s $650 million issuance of 40-year 5.7% fixed-rate debentures. The outlook is positive.

The proceeds are expected to be used for general corporate purposes as well as the redemption of some of the company's 9% junior subordinated notes due 2068.

The agency said Prudential's Baa2 senior debt rating is based primarily on the group's strong brand name and international business franchises, diversified core earnings base and strong capital position.

These credit strengths are tempered by still high levels of operating and financial debt, higher than average equity market sensitivity and a relatively complex capital structure, Moody's said.

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