Fitch: Aflac debentures BBB

Fitch Ratings said it assigned a BBB rating to Aflac Inc.'s recently announced $450 million junior subordinated debentures issuance.

The agency said it also affirmed the A long-term issuer default rating and the AA- insurance financial strength ratings on Aflac, Inc. and its insurance subsidiaries. The outlook is stable.

Fitch said it expects proceeds from the new debentures to be used for general corporate purposes.

The affirmation of Aflac's ratings reflects the company's strong and steady earnings, leverage ratios that are consistent with expectations for the rating category, strong balance sheet and high regulatory risk-based capital ratios.

The agency said the ratings also incorporate Fitch's view that Aflac's GAAP basis shareholders' equity is comparatively highly exposed to interest rate risk as well as the impact of overall low economic growth in the company's key Japanese market.

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