S&P rates Prudential notes A-

S&P said it assigned an A- long-term issue rating to the proposed $750 million fixed-rate undated junior subordinated notes issued by Prudential plc.

The agency said it rates the notes two notches lower than the A+ long-term counterparty credit rating on Prudential.

The rating on the junior subordinated notes is based on an understanding that the notes are issued under the group's £6 billion medium-term note program and the noteholders will be subordinated to the group's senior creditors, S&P said.

The agency also said it takes into account that Prudential has the option to defer interest if, during the previous six-month period, no dividend on any class of shares has been declared.

Prudential can call the notes in 2022 and on each quarterly interest payment date thereafter, subject to conditions for redemption, including regulatory approval, S&P said.

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