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credit fundamentals, which if continued, may lead to a rating change. These indicators are not necessarily a precursor of a rating change nor do they preclude a rating agency from changing a rating at any time without notice. Currently, Fitch has all the Company’s ratings on Stable outlook, except for the financial strength ratings assigned to Prudential Insurance and certain other insurance subsidiaries which are on Negative outlook. Moody’s, S&P, and A.M. Best have all the Company’s ratings on Stable outlook. Requirements to post collateral or make other payments as a result of ratings downgrades under certain agreements, including derivative agreements, can be satisfied in cash or by posting permissible securities held by the subsidiaries subject to the agreements. In addition, a ratings downgrade by A.M. Best to “A-” for our domestic life insurance companies would require Prudential Insurance to either post collateral or a letter of credit in the amount of approximately $1.5 billion, based on the level of statutory reserves related to the variable annuity business acquired from Allstate. We believe that the posting of such collateral would not be a material liquidity event for Prudential Insurance. In view of the difficulties experienced in recent years by many financial institutions, the rating agencies have heightened the level of scrutiny that they apply to such institutions, have increased the frequency and scope of their credit reviews, have requested additional information from the companies that they rate, and may adjust upward the capital and other requirements employed in the rating agency models for maintenance of certain ratings levels, such as the financial strength ratings currently held by our life insurance subsidiaries. In addition, actions we might take to access third-party financing or to realign our capital structure may in turn cause rating agencies to reevaluate our ratings. The following is a summary of the significant changes or actions in ratings and rating outlooks for our Company, as well as for the life insurance industry and sector, that have occurred from January 1, 2016 through February 17, 2017: On September 7, 2016, Fitch revised its Sector Outlook for U.S. life insurers to Negative. Fitch’s Sector Outlook reflects its view of underlying fundamental trends in the industry and the current operating environment. The revision of the Sector Outlook to Negative is due to macro challenges tied to declining interest rates and market volatility. At the same time, Fitch kept its Rating Outlook, which indicates the direction in which ratings are likely to move over the next 18-24 months, on the U.S. life insurance sector as Stable. The current Stable rating reflects Fitch’s view that the impact of the negative fundamentals indicated in their Sector Outlook remain manageable in the context of industry earnings and capital over the outlook period, and Fitch’s expectations that key credit metrics will remain largely consistent with current ratings. These indicators are not necessarily a precursor of a rating change nor do they preclude a rating agency from changing a rating at any time without notice. On November 15, 2016, Fitch upgraded Prudential Financial’s long-term senior debt rating to A- from BBB+ with a Stable outlook and the financial strength ratings of our U.S. operating entities to “AA-” from “A+” with a Negative outlook. On November 15, 2016, Moody’s revised its Rating Outlook on the U.S. life insurance industry to Negative. Moody’s outlook indicates their expectations for the fundamental credit conditions driving the U.S. life insurance industry over the next 12-18 months. The change in the outlook is a result of increased pressure on life insurers’ sales, revenues and profitability due to persistent low interest rates and weak economic growth, together with regulatory pressures on product distribution. The change in outlook back to Stable from Negative can occur with a gradual, steady increase in long-term interest rates in 2017, underpinned by strong equity market levels and an improvement in economic growth. On December 7, 2016, A.M. Best revised its Rating Outlook on the U.S. life insurance industry to Negative. The revision of the Rating Outlook to Negative reflects A.M. Best’s view that the industry is entering into a period of increased volatility across both economic and regulatory fronts. A.M. Best’s outlook indicates that there is uncertainty around the slow premium growth for life and other products, disruption from merger and acquisition activity, and the industry’s historic slow incremental approach in the face of a rapidly changing landscape. Contractual Obligations The table below summarizes the future estimated cash payments related to certain contractual obligations as of December 31, 2016. The estimated payments reflected in this table are based on management’s estimates and assumptions about these obligations. Because these estimates and assumptions are necessarily subjective, the actual cash outflows in future periods will vary, possibly materially, from those reflected in the table. In addition, we do not believe that our cash flow requirements can be adequately assessed based solely upon an analysis of these obligations, as the table below does not contemplate all aspects of our cash inflows, such as the level of cash flow generated by certain of our investments, nor all aspects of our cash outflows. Estimated Payments Due by Period Total Short-term and long-term debt obligations(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Operating and capital lease obligations(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchase obligations: Commitments to purchase or fund investments(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commercial mortgage loan commitments(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other liabilities: Insurance liabilities(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2017 2018-2019 2020-2021 (in millions) $ 4,811 $ 3,361 235 148 2022 and thereafter 38,931 718 $ 2,097 150 $ 28,662 185 6,376 1,984 5,486 1,643 533 327 212 0 145 14 1,124,645 12,157 44,024 11,966 69,170 85 72,569 53 938,882 53 $1,184,811 $65,366 $75,161 $76,343 $967,941 (1) The estimated payments due by period for long-term debt reflects the contractual maturities of principal, as disclosed in Note 14 to the Consolidated Financial Statements, as well as estimated future interest payments. The payment of principal and estimated future interest for short-term debt are 92 Prudential Financial, Inc. 2016 Annual Report