Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Está por salir del sitio local de México y comenzará a navegar en el sitio global. ¿Desea continuar?
No mostrar este mensaje nuevamente
Si
No
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE”, you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s information that becomes accessible to you (the “Information”). References herein to “Moody’s” include Moody’s Corporation. and each of its subsidiaries and affiliates..

 

Terms of One-Time Website Use

 

1.             Unless you have entered into an express written contract with www.moodys.com to the contrary and/or agreed to the Terms of Use at www.moodys.com or ratings.moodys.com, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.                   

 

2.             CREDIT RATINGS AND MOODY’S MATERIALS FOUND ON WWW.MOODYS.COM OR SITES OTHER THAN RATINGS.MOODYS.COM MAY NOT BE DISPLAYED IN REAL TIME. FOR REAL-TIME DISPLAYS OF CREDIT RATINGS AND OTHER INFORMATION REQUIRED TO BE DISCLOSED BY MIS PURSUANT TO APPLICABLE LAW OR REGULATION, PLEASE USE RATINGS.MOODYS.COM.           

 

3.             You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities. Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision. No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.

 

4.             To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.     

 

5.             You agree to read and be bound by the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.​​​

 

6.             You agree that any disputes relating to this agreement or your use of the Information, whether in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

MOODY'S UPGRADES PRUDENTIAL INSURANCE COMPANY OF AMERICA'S INSURANCE FINANCIAL STRENGTH RATING TO Aa3; AFFIRMS CREDIT RATINGS OF PRUDENTIAL FINANCIAL, INC. (SENIOR DEBT AT A3)

13 Oct 2004
MOODY'S UPGRADES PRUDENTIAL INSURANCE COMPANY OF AMERICA'S INSURANCE FINANCIAL STRENGTH RATING TO Aa3; AFFIRMS CREDIT RATINGS OF PRUDENTIAL FINANCIAL, INC. (SENIOR DEBT AT A3)

Approximately $15 Billion of Securities Affected

New York, October 13, 2004 -- Moody's Investors Service has upgraded the insurance financial strength (IFS) rating of Prudential Insurance Company of America (PRICOA) to Aa3 from A1. This concludes a review for possible upgrade that began on April 27, 2004. The rating agency also affirmed the credit ratings of Prudential Financial, Inc. (PFI) with senior debt at A3.

The A2 IFS rating of Gibraltar Life Insurance Company (Gibraltar) remains under review for possible upgrade. The outlook on all of the group's ratings, except Gibraltar, is stable.

The rating agency said that PRICOA's upgrade reflects the improvements to PFI's financial profile that have taken place over the recent past, including an improved business mix with a lowered risk profile, the potential for additional earnings growth and capital generation from both the company's long-standing core businesses and recent acquisitions, and strong risk adjusted capital at the various life insurance operating companies.

Moody's said that PFI has substantially improved its risk profile by divesting the healthcare and property and casualty businesses, and by limiting its exposure to the securities brokerage business through a joint venture with Wachovia. In addition, Moody's commented that PFI's two recent acquisitions, American Skandia and Prudential Retirement Insurance and Annuity Company (formerly Cigna Life Insurance Company) have significantly enhanced its market position and provided scale efficiencies in its annuity and retirement businesses.

The rating agency also noted that integration is essentially complete at American Skandia and is on target for the Cigna retirement business. With integration costs largely behind them and expense savings starting to be realized, these acquisitions should contribute strongly to PFI's overall earnings. According to Moody's, PFI's earnings should also benefit from the reduction of one-time costs related to the Wachovia Securities joint venture, as well as from ongoing expense cutting.

The rating agency also noted that the level, quality, and predictability of PFI and PRICOA's earnings have improved, as the company has successfully implemented significant expense cuts, as its mix of business has shifted, and as the proportion of its earnings derived from its own pension plan has significantly decreased.

However, the rating agency noted that PFI is under strong pressure from its shareholder constituents to improve its return on equity. Moody's said that PFI has undertaken several initiatives that weaken overall financial flexibility and capital adequacy, including a large share repurchase program funded in part by dividends from the insurance subsidiaries and in part by an increase in financial leverage. Moody's noted that corporate financial leverage has increased sharply over the last two years. In addition, Moody's views as a credit negative, the sale, through a securitized transaction, of the future earnings, and through reinsurance arrangements, the release of trapped capital of PRICOA's closed block of participating life insurance business -- the company's lowest risk and most stable source of cash flows and earnings. However, the rating agency commented that the company's capital position and risk adjusted capital ratios still remain strong and are appropriate for its current Aa3 IFS rating category.

The various on-going regulatory investigations concerning PFI's mutual fund and variable annuity trading activities create uncertainty, but Moody's commented that it believed that any financial impact would not be material to PFI.

The rating agency said that the upgrade of PRICOA's IFS rating to Aa3, widens the notching between the IFS rating and the senior unsecured debt rating of PFI (A3) to three notches, the typical rating spread for Moody's life insurance sector. However, the rating agency added that it will continue to evaluate the appropriateness of the three notch spread for the PFI group, given the diversification of the company's earnings. According to Moody's, the Asian operations which are not highly correlated with the U.S. insurance businesses, could provide PFI significant cash flow diversification (e.g. source of dividends) to its ability to service interest, shareholder dividends, and other cash uses at the holding company. The difficulty of extracting cash flows on a predictable and consistent basis from the foreign operations is, however, subject to further analysis.

The rating agency said that current Aa3 IFS rating incorporates an expectation that PFI's financial leverage (excluding short term investment-related debt) would remain below 35%, and that core corporate debt financial leverage (as defined by PFI) would remain below 20%. The current rating also reflects PRICOA's maintaining a stand-alone NAIC RBC (Risk-Based Capital ratio) of at least 300% and cash fixed charge coverage (cash inflows from subsidiaries divided by the sum of shareholder dividends and pre-tax debt interest expense) at PFI in the two to three times range. Moody's said that it also expects 2005 GAAP pre-tax operating earnings for PFI's financial service business (FSB) in excess of $2 billion (excluding positive income from the company's own pension plan), as well as 2005 statutory pre-tax operating earnings (before capital gain and losses) of at least $900 million. The current rating also assumes the absence of significant one-time charges, which have occurred frequently in the past.

The rating agency said that factors that could move the rating up from the Aa3 IFS level include the lowering of overall financial leverage below 25% and corporate debt financial leverage (as defined by PFI) to less than 15%, improved cash fixed charge coverage at PFI to above three times, a RBC ratio in excess of 350%, as well as at least 25% growth in pre-tax operating earnings on both a GAAP and statutory basis. Additional in-market acquisitions that are conservatively funded and that achieve significant cost savings and earnings and franchise improvement would also be possible drivers of a ratings upgrade.

The rating agency said that a ratings downgrade could result if financial leverage increases beyond 35%, or if RBC falls below 300%. Cash fixed charge coverage ratio below two times and a 20% or greater drop in operating earnings, on a GAAP or a statutory basis, could cause a ratings downgrade. Acquisitions that materially increase the company's business risk or financial risk profile, could also result in lower ratings.

The following ratings were upgraded with a stable outlook:

Prudential Funding, LLC -- senior unsecured debt rating to A1 from A2;

Prudential Holdings LLC -- "unwrapped" senior secured debt rating to A2 from A3;

Prudential Insurance Company of America -- insurance financial strength rating to Aa3 from A1; senior unsecured debt rating to A1 from A2; and surplus and capital notes ratings to A2 from A3;

PRICOA Global Funding I -- senior secured rating to Aa3 from A1;

Pruco Life Insurance Company -- insurance financial strength rating to Aa3 from A1;

Dryden Investor Trust -- senior debt rating to A1 from A2.

The following rating remains on review for possible upgrade:

The Gibraltar Life Insurance Company -- insurance financial strength rating of A2.

The followings ratings were affirmed with a stable outlook:

Prudential Financial, Inc. -- senior unsecured debt and issuer ratings of A3; subordinated debt rating of (P)Baa1; preferred stock ratings of (P)Baa2.

Prudential Financial, Inc. -- short-term debt rating for commercial paper of Prime-2;

Prudential Financial Capital Trust II and III -- preferred stock rating of (P)Baa1;

Prudential Holdings LLC -- "wrapped" senior secured debt rating of Aaa;

Prudential Funding, LLC -- short-term debt rating for commercial paper and extendible commercial notes of Prime -1.

Prudential Financial, Inc. is an insurance and investment management organization headquartered in Newark, New Jersey. The company had approximately $375 billion in GAAP assets and about $20.6 billion in shareholders' equity as of June 30, 2004.

Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations.

For more information, visit our website at www.moodys.com/insurance.

New York
Robert Riegel
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Ann G. Perry
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
© 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.