Fitch rates Aflac debt A

Fitch Ratings said it assigned an A rating to Aflac Inc.'s $850 million of 10-year senior unsecured debt. Ratings remain on Rating Watch negative, where they were placed on Jan. 28.

The company has an issuer default rating at A+.

Some of the proceeds will be used to repay an April $500 million intercompany loan from Aflac's main insurance subsidiary, American Family Life Assurance Co. of Columbus. The remaining $350 million of the debt issuance will be retained at the holding company to provide financial flexibility, Fitch said.

The watch reflects the potential for future investment impairments, particularly in perpetual preferred securities, according to the agency.

Aflac's strong and steady earnings quality and the company's otherwise very strong balance sheet includes moderate financial leverage, high regulatory capital quality and an otherwise clean asset portfolio, the agency said.

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