A.M. Best has assigned Long-Term Issue Credit Ratings of a- to the new yen-denominated senior unsecured notes of Aflac Incorporated (Aflac) (Columbus, GA) (NYSE:AFL), which total JPY 53.4 billion. The offering consists of JPY 29.3 billion of 1.159% senior unsecured notes due 2030; JPY 15.2 billion of 1.488% senior unsecured notes due 2033; and JPY 8.9 billion of 1.750% senior unsecured notes due 2038. The outlook assigned to these Credit Ratings (rating) is stable. Aflacs existing Long-Term Issuer Credit Ratings remain unchanged.
Aflac anticipates the proceeds from the sale of the notes to be utilized for general corporate purposes. Aflacs capitalization and liquidity provide financial flexibility and support for the overall enterprise. Aflacs financial leverage, which was approximately 20% at June 30, 2018, will increase modestly to approximately 22% with the new issuance. Additionally, Aflacs interest coverage is expected to remain near 20 times.
Aflacs 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. 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.
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