Fitch applies BBB to Aflac notes

Fitch Ratings said it assigned a BBB rating to Aflac, Inc.'s proposed issuance of ¥60 billion 2.108% subordinated notes due 2047.

The rating is equivalent to the rating on Aflac's existing subordinated debt.

The notes are rated three notches below the company's A insurer default rating, which reflects Fitch's assumption of "poor" recovery prospects in the event of default given the level of subordination and one additional notch for "minimal" nonperformance risk, the agency explained.

No sovereign constraint was applied since the noted ratings are at or below the Japan sovereign.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.