Fitch Rates Prudential's Jr. Subordinated Notes 'A-'; Outlook Stable

Business Wire, July 2, 2008

NEW YORK -- Fitch Ratings assigns an 'A-' rating to Prudential Financial, Inc.'s (NYSE: PRU) $600 million 8.875% fixed-to-floating rate institutional hybrids due 2068 and $800 million retail hybrids due 2068. PRU has the right to defer interest for up to 5 years, or if a market disruption event is continuing, up to 10 consecutive years. The notes may be redeemed by PRU prior to 6-15-2048 subject to the terms of a Replacement Capital Covenant. Fitch also affirms the ratings on PRU , including the 'A ' Issuer Default Rating (IDR) and the ratings of all senior unsecured debt ratings. The Rating Outlook is Stable.

Based on Fitch's hybrid rating criteria, the notes have a high equity component. Fitch has assigned a class D designation to those notes that will allocate 75% of the principal to adjusted equity and 25% to adjusted debt in evaluating the financial leverage of PRU. Key features supporting the equity credit class of the notes include the junior subordinated ranking, 5-year deferral period, and a long maturity with no put provision. PRU's call option is balanced by a replacement capital covenant not to redeem the notes prior to a scheduled maturity in 2038 unless replaced by the issuance of replacement securities which (i) rank pari passu or junior in liquidation or a winding up, (ii) have no maturity or at least 60-year maturity and (iii) are either, subject to the qualifying replacement capital covenant, or have either no call provision or are non-cumulative or, have a mandatory trigger provision and are subject to intent-based replacement disclosure and have an optional deferral provision.

PRU's proforma equity-credited adjusted leverage of 22.8% at March 31, 2008 was within ratings expectations. Fitch views PRU's holding company cash flows and financial flexibility to be very strong.

Fitch rates the following:

Prudential Financial, Inc.

--8.875% fixed-to-floating junior subordinated notes A-';

--9.0% junior subordinated notes A-'.

Fitch also affirms the follow ratings for PRU:

--IDR at 'A ';

--Senior notes at 'A';

--commercial paper at 'F1'.

The Rating Outlook is Stable.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.