Fitch hikes outlook on Prudential after Wachovia Securities sale

Fitch Ratings on Monday raised its outlook on Prudential Financial Inc., citing improvements to the insurance and investment company's capital position.
JAN 06, 2010
Fitch Ratings on Monday raised its outlook on Prudential Financial Inc., citing improvements to the insurance and investment company's capital position. The revision was made in light of the Dec. 15 announcement that Wells Fargo will buy Prudential's minority interest in its retail brokerage arm for $4.5 billion. Fitch changed its outlook to "stable" from "negative." The "BBB+" long-term issuer default and the "BBB" senior debt ratings were affirmed. In a note to analysts, Fitch said that Prudential has made considerable progress addressing concerns about its capitalization, liquidity position and overall financial flexibility. From the end of 2007 through Sept. 30, Fitch noted that Prudential has reduced total leverage by over $11 billion. While Prudential's exposure to investment losses remains a concern, Fitch said the company is well positioned to deal with such losses and other contingencies in the medium term. Fitch said the sale of Prudential's minority stake in Wachovia Securities, Wells Fargo's retail brokerage arm, should generate an after-tax gain of $1.5 billion. The sale is expected to close by the end of the year.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave