Thursday, February 19, 2009

Fitch Gives Prudential the Friend-O Treatment

PRU stock getting hammered after Fitch had some choice words for the insurer.

This is actually very scary news for the company as it now loses access to the Fed's Commercial Paper program. Says spokesman Bob DePhilippo: "We no longer have the ability to borrow funds from theCommercial Paper Funding Facility."

Fitch is likely looking at all the other insurers as well (HIG, ALL, etc. not looking too hot).

Prudential Fitch - Free Legal Forms Sphere: Related Content
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Anonymous said...

Great post. The problems at PRU are indeed troubling. While the entire industry is under pressure, PRU distinguishes itself from its peers in terms of its level of hinky assets (subprime and CMBS) and its failure to hedge a large portion of its equity-sensitive annuity block. These and other sobering details can be found in this new website: