S&P gives Aflac debentures BBB

S&P said it assigned its BBB debt rating to Aflac Inc.'s yen-denominated junior subordinated debentures due 2047.

The company expects to use the proceeds to refinance all or a portion of the redemption price of its 5.5% subordinated debentures due in 2052.

With this issue, the agency said it estimates that Aflac's financial leverage will be unchanged at roughly 26%, supporting the rating and meeting S&P’s expectations.

“The BBB rating is two notches below our long-term counterparty credit rating on the group's holding company, reflecting the subordination and optional deferability of these notes,” the agency said in a news release.

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