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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 29, 2018 05:24 PM (EDT)
A.M. Best has assigned indicative Long-Term Issue Credit Ratings (Long-Term IR) of “a-” to senior unsecured debt and “bbb+” to subordinated debt securities under the recently filed universal shelf registration of Aflac Incorporated (Aflac) (Columbus, GA) [NYSE: AFL]. Concurrently, A.M. Best has assigned a Long-Term IR of “a-” to the recently priced $550 million fixed 4.750% senior unsecured notes due 2049 of Aflac. The outlook assigned to these Credit Ratings (rating) is stable. Aflac’s Long-Term Issuer Credit Rating of “a-” and the ratings of its operating insurance subsidiaries remain unchanged.
Aflac anticipates the proceeds from the sale of the notes to be utilized to fund all or a portion of the redemption price of its 2.4% senior notes due 2020, of which there is $550 million principal amount outstanding; with amounts in excess to be used for general corporate purposes. Aflac’s financial leverage will remain at approximately 22% with the new issuance. A.M. Best notes that Aflac’s capitalization and liquidity provide financial flexibility and support for the overall enterprise and its operating entities.
Aflac’s insurance subsidiaries offer a diverse portfolio of supplemental health products in the United States and Japan, which generate strong earnings and steady cash flows to the holding company, in turn supporting its cash position and interest coverage metrics. Aflac is the leader in voluntary worksite insurance sales in the United States, and in Japan, the company is the leading provider of medical and cancer insurance. Aflac insurance products provide coverage to more than 50 million people worldwide.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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