This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
A.M. Best Co. has assigned debt ratings of “a-” to the forthcoming senior unsecured notes of
Aflac Incorporated (Aflac) (Columbus, GA) [NYSE: AFL]. The securities will be issued in two tranches: $400 million 2.65% senior unsecured notes due 2017 and $350 million 4.00% senior unsecured notes due 2022. The outlook assigned to both ratings is stable. Aflac’s existing issuer credit and debt ratings are unchanged.
Proceeds from the issuance will be used to repay $347 million aggregate principal amount of the 1.87% Samurai notes due June 2012. The balance of the proceeds will be used for general corporate purposes, including capital contributions to its subsidiaries, if necessary. Aflac’s overall financial leverage is expected to drop back below 25% following the repayment of the Samurai notes, while interest coverage should remain in the high teens, driven by the company’s strong operating earnings profile. Both ratios are well within A.M. Best’s guidelines for its current rating level.