Fitch Rates Prudential Financial Inc.'s Hybrid Debt 'BBB-'

  Fitch Rates Prudential Financial Inc.'s Hybrid Debt 'BBB-'

Business Wire

NEW YORK -- November 16, 2012

Fitch Ratings has assigned a 'BBB-' rating to Prudential Financial, Inc.'s
(PFI) issuance of $1.5 billion of 5.63% fixed- to floating-rate junior
subordinated notes due in 2043.

Fitch expects proceeds from the debt issuance to be used to refinance certain
outstanding debt with higher interest expense and for general corporate
purposes. Fitch's view of PFI's financial leverage is not affected by this
transaction. Fitch expects PFI's financial leverage ratio (FLR) to be near 35%
at year-end 2012. Based on Fitch's rating criteria, this hybrid debt issuance
has not been assigned any equity credit.

The company's FLR was 36% as of Sept. 30, 2012 compared to 32% at year-end
2011. The ratio increased due to an increase in financial debt and to PFI's
adoption on Jan. 1, 2012 of a new accounting standard for deferred acquisition
costs, which reduced shareholders equity and increased the ratio by about 2%,
and prefunding of debt maturities. Total Leverage, including all operating
leverage, at Sept. 30, 2012 was modestly lower at 41% compared to 42% at
year-end 2011.

Fitch last reviewed and affirmed PFI's ratings on April 19, 2012. The
affirmation of PFI's ratings reflects Fitch's view that the company's recent
financial performance and balance sheet fundamentals remain consistent with
rating expectations.

Key rating triggers that could result in an upgrade of PFI's operating and
holding company ratings are: continued reduced reliance on short-term funding;
progress reducing the financial leverage ratio to the mid-20% range and total
leverage below 40%; GAAP interest coverage in the 8x-10x range (based on
pre-tax adjusted operating earnings); stated NAIC risk-based capital (RBC)
ratio remaining near current levels; and Japan solvency margin ratio above
700%.

Key rating triggers that could result in a downgrade of PFI's holding company
ratings (i.e. wider notching from the operating company) include: an FLR above
35%; outstanding CP above 10% of total debt on a sustained basis; a TFC above
1.5x; and/or a GAAP interest coverage ratio below 5x.

Triggers that could result in a downgrade of both operating and holding
company ratings include: a stated NAIC RBC ratio below 400%, and Japan
solvency margin ratio below 600%, as well as a more significant breach of the
above noted holding company triggers.

Fitch has assigned the following rating:

Prudential Financial, Inc.
--5.63% junior subordinated notes due Nov. 15, 2043 'BBB-'

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Insurance Rating Methodology, Oct. 2012;

--Global Financial Institutions Rating Criteria' (Aug. 16, 2011).

Applicable Criteria and Related Research:

Insurance Rating Methodology ¬タヤ Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=692293

Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

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Contact:

Fitch Ratings
Primary Analyst
Cynthia J. Crosson, +1 212-908-0863
Director
Fitch, Inc.
One State Street Plaza
New York, New York 10004
or
Secondary Analyst
Douglas L. Meyer, CFA, +1 312-368-2061
Managing Director
or
Committee Chairperson
James Auden, +1 312-368-3146
Managing Director
or
Media Relations
Brian Bertsch, +1 212-908-0549 (New York)
brian.bertsch@fitchratings.com