Fitch rates Aflac notes A

Fitch Ratings said it assigned an A rating to Aflac, Inc.'s $400 million issue of 6.9% senior unsecured notes due 2039.

All ratings, including the A+ issuer default rating, remain on Rating Watch negative, where they were placed on Jan. 28, 2009.

Proceeds from the new notes will be used to repay a senior debt issue of $437 million that is maturing in July 2010.

The Rating Watch negative reflects Fitch's continuing evaluation of the potential for future investment impairments, particularly in perpetual preferred securities. The agency said if future impairments on this portfolio were to materially reduce earnings or impact capital quality, then rating downgrades would be likely depending on the magnitude of any asset impairments.

The agency noted the company has a strong and steady earnings quality and an otherwise very strong balance sheet.

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