Fitch rates Prudential P-Caps A-

Fitch Ratings said it assigned an A- rating to the $1.5 billion of pre-capitalized trust securities, or P-Caps, issued by Five Corners Funding Trust III and Five Corners Funding Trust IV, Delaware statutory trusts established by Prudential Financial, Inc.

PFI’s other ratings and its affiliates are unaffected by today's rating action.

The P-Caps issued by Five Corners Funding Trust III are subject to mandatory redemption on Feb. 15, 2033. Five Corners Funding Trust IV’s P-Caps are subject to mandatory redemption on Feb. 15, 2053.

“The issuances precede the upcoming redemption of $1.5 billion of P-Cap securities issued in 2013. Proceeds from the P-Cap issuances will be invested in a portfolio of principal and/or interest strips of U.S. Treasury securities. Based on the terms of the facility agreements, PFI has the right (i.e., issuance right) to require each trust to purchase senior unsecured notes issued by PFI with a maturity matching the mandatory redemption date of the P-Caps in exchange for a proportionate share of the assets in the trust. Accordingly, the ratings assigned to the P-Caps are equivalent to PFI's existing senior unsecured notes,” Fitch said in a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.