Fitch rates Prudential perpetual securities A+

Fitch Ratings said it assigned Prudential plc's $300 million issue of 6.5% perpetual subordinated capital securities a final rating of A+, in line with the insurer's existing capital securities.

The issue was targeted at the US retail market, and the purpose is to prefinance the 2007 maturity of the £150 million senior notes issued by Prudential Finance BV. The structure, terms and conditions of this new issue are almost identical to the $250 million capital securities issued in 2004, also rated A+. The capital securities will qualify for innovative tier one status.

The capital securities may be exchanged on any interest payment date from March 23, 2011 at the company's option into non-cumulative dollar-denominated preference shares, on which the dividend payments would be fully discretionary. The capital securities may be called at the company's option on any interest payment date from Sept. 23, 2010, although there is no step-up clause.

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