Fitch rates Aflac notes A-

Fitch Ratings said it assigned A- ratings to Aflac, Inc.'s $300 million 3.45% senior notes due Aug. 15, 2015 and $450 million 6.45% senior notes due Aug. 15, 2040 and maintained the company's A issuer default rating and the A- ratings on its existing notes.

The outlook remains negative.

The new debt issuance will be used to repay two senior debt issues of approximately $396 million that mature in September 2011.

The negative outlook 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 ratings downgrades would be likely depending on the magnitude of any asset impairments.

Fitch said the company's earnings quality is strong and steady and its balance sheet - which includes moderate financial leverage, high regulatory capital quality and an otherwise clean asset portfolio - is otherwise very strong. The agency believes the company will generate strong earnings in 2010 that could offset any potential hits to statutory capital.

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