Moody's downgrades Aflac

Moody's Investors Service said it downgraded the senior debt ratings of Aflac, Inc. to A3 from A2, along with the insurance financial strength rating of its primary operating subsidiary, American Family Life Assurance Co. of Columbus to Aa3 from Aa2.

The outlook was changed to stable from negative.

The downgrade reflects continued concerns over the company's higher than average investment risk appetite, highlighted by significant concentrations in its investment portfolio, Moody's said.

The downgrade also reflects increased concerns about the company's limited business and product diversification, given its concentration and niche focus on supplemental health products, both in Japan and the United States, Moody's added.

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