Moody's rates Aflac notes A2

Moody's Investors Service said it assigned an A2 rating to the $750 million of fixed-rate senior unsecured notes, divided into two tranches maturing in 2015 and 2040, to be issued by Aflac, Inc.

The outlook is negative.

The proceeds are expected to be used to repay Aflac's fixed- and floating-rate Uridashi notes coming due in September 2011, share repurchases and general corporate purposes. The notes are a drawdown from a shelf registration filed in May 2009, Moody's said.

Although the planned refinancing of the 2011 debt maturities with the proceeds of the issuance eliminates near-term refinancing risks, the incremental debt increases Aflac's adjusted financial leverage modestly, the agency said.

Going forward, Moody's said it anticipates that the company will reduce adjusted financial leverage to below 25%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.