Moody’s rates Prudential notes A3 (hyb)

Moody's Investors Service said it assigned an A3 (hyb) rating to the undated $725 million subordinated tier 2 notes issued by Prudential plc (A2 senior debt, stable) under its £6 billion medium-term note program.

Moody’s said the A3 (hyb) rating reflects Prudential’s A2 senior debt rating and the agency’s standard notching practice for such instruments.

The notching reflects: (a) The subordination of the notes; (b) the optional and mandatory (based on breach of regulatory capital requirements) coupon skip mechanisms; and (c) the cumulative nature of deferred coupons, in case of deferral.

The undated subordinated instrument ranks pari passu with existing tier 2 subordinated debt of Prudential.

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