AM Best Assigns Issue Credit Rating to Prudential Financial, Inc.’s Senior Unsecured Medium-Term Notes

Rhea-AI Summary

AM Best has assigned an 'a-' (Excellent) Long-Term Issue Credit Rating to Prudential Financial's $750 million senior unsecured medium-term notes, due 2035, with a 5.2% interest rate. The outlook is stable.

The company plans to use the proceeds for general corporate purposes, including refinancing medium-term notes maturing through 2026. While debt leverage is expected to increase slightly in the medium term, it should return to pre-issuance levels after 2026.

Financial highlights include:

• Parent company holds $4.6 billion in highly liquid assets (year-end 2024)
• Full-year 2024 pre-tax adjusted operating income: $5.9 billion
• Net income attributable to PFI: $2.7 billion
• Global asset management business contributed $875 million in fee-based pre-tax earnings

Positive

• Strong liquidity position with $4.6B in highly liquid assets
• Substantial 2024 pre-tax adjusted operating income of $5.9B
• Healthy net income of $2.7B in 2024
• Significant asset management contribution of $875M in fee-based earnings
• Excellent 'a-' credit rating from AM Best

Negative

• Expected increase in debt leverage in the medium term
• Additional debt burden with new $750M notes issuance

Insights

Financial Analyst

Prudential Financial has received an "a-" (Excellent) rating from AM Best for its newly issued $750 million senior unsecured medium-term notes carrying a 5.2% interest rate and maturing in 2035. This debt issuance represents standard capital management for Prudential, with proceeds directed toward general corporate purposes and refinancing existing notes maturing through 2026.

The company's financial fundamentals remain solid despite the temporary leverage increase expected from this issuance. With $4.6 billion in highly liquid assets at the parent company level (year-end 2024) and $5.9 billion in pre-tax adjusted operating income for 2024, Prudential maintains significant financial flexibility. The $2.7 billion net income attributable to PFI demonstrates continued profitability across operations.

Importantly, while debt leverage will temporarily rise, AM Best projects it will return to pre-issuance levels following completion of refinancing activities. Interest coverage ratios are expected to remain favorable, indicating Prudential's continued ability to service debt obligations effectively.

The company's diversified business model continues delivering results, with both domestic and international segments contributing substantially to earnings. The global asset management business alone contributed approximately $875 million in fee-based pre-tax earnings, highlighting the strength of Prudential's multi-segment approach and providing additional stability to support debt servicing capabilities.

For investors, this transaction confirms Prudential's continued access to capital markets on competitive terms while potentially optimizing its debt maturity profile through the refinancing of upcoming maturities.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to the $750 million, 5.2% senior unsecured medium-term notes, due 2035, issued by Prudential Financial, Inc. (Prudential) (Newark, NJ) [NYSE: PRU]. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of Prudential and its subsidiaries remain unchanged.

Prudential intends to use the net proceeds from the sale of the notes for general corporate purposes, which may include refinancing its medium-term notes maturing through 2026. The impact on the company’s debt leverage is expected to elevate slightly higher over the medium term as a higher leverage ratio will be realized prior to the maturity of medium-term notes through 2026. Financial leverage is expected to decline slightly back to pre-issuance levels. Prudential’s interest coverage ratio is expected to remain favorable. Prudential’s liquidity position is strong, with the parent company holding highly liquid assets of $4.6 billion at year-end 2024. The company’s full-year 2024 pre-tax adjusted operating income was $5.9 billion; however, on a net basis, the company reported income attributable to PFI of $2.7 billion. In its most recent disclosure, a primary driver of full-year 2024 results is derived by both its U.S. business and international business segments, as well as Prudential’s global asset management business, which added approximately $875 million in fee-based pre-tax earnings.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250313488915/en/

Wayne Kaminski

Associate Director

+1 908 882 1916

wayne.kaminksi@ambest.com



Michael Porcelli

Senior Director

+1 908 882 2250

michael.porcelli@ambest.com



Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com



Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best

FAQ

What are the terms of Prudential Financial's (PRU) new medium-term notes issued in 2025?

PRU issued $750 million in senior unsecured medium-term notes with a 5.2% interest rate, due in 2035.

How did Prudential Financial (PRU) perform financially in 2024?

PRU reported $5.9 billion in pre-tax adjusted operating income and $2.7 billion in net income attributable to PFI in 2024.

What is Prudential's (PRU) current liquidity position?

PRU maintains a strong liquidity position with $4.6 billion in highly liquid assets at year-end 2024.

How much did Prudential's (PRU) global asset management business contribute in 2024?

PRU's global asset management business contributed $875 million in fee-based pre-tax earnings.

What is AM Best's credit rating for Prudential's (PRU) new notes?

AM Best assigned an 'a-' (Excellent) Long-Term Issue Credit Rating with a stable outlook.