Fitch rates Aflac notes A-

Fitch Ratings said it assigned an A- rating to the ¥60 billion 0.932% senior unsecured notes due 2027 issued by Aflac, Inc.

The A- rating is equivalent to the ratings on Aflac's outstanding senior unsecured notes, Fitch said. The company also has a long-term issuer default rating of A and stable outlook.

The proceeds will be used for general corporate purposes, including replenishing cash used to repurchase the company's 6.9% senior notes due 2039 and 6.45% senior notes due 2040 in its recent tender offer, the agency explained.

Fitch said it does not anticipate a significant change in the company's financial leverage ratio.

The ratings reflect the company's extremely strong competitive position in the supplemental accident and health insurance markets in Japan and the United States, extremely strong earnings profile and very strong capitalization, the agency said.

The ratings also consider the impact of slow economic growth in Aflac's key Japanese market and its sizable exposure to Japanese sovereign risk, including significant investment concentration in Japanese government bonds, Fitch said.

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