S&P assigns Prudential floaters A

Standard & Poor's said it assigned its A senior unsecured debt rating to Prudential Financial Inc.'s (A/stable/A-1) $2.0 billion floating-rate senior unsecured convertible notes, which are due to mature in December 2036.

The rating reflects Prudential's modest financial leverage at 17%, strong and diversified level of cash flows, strong fixed-charge coverage in excess of 16x and strength of its global insurance operations, the agency said.

S&P noted that the majority of the proceeds from this issuance are expected to be invested in a high-quality, duration-matched investment portfolio, adding that it believes that these proceeds qualify for treatment as operating leverage because of the discrete nature of the pool of assets, which are segregated from the rest of the issuer's assets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.