Fitch rates Aflac notes A-

Fitch Ratings said it assigned an A- rating to $550 million of new 4.75% senior unsecured notes due 2049 issued by Aflac Inc.

The A- rating is equivalent to the agency's ratings on Aflac's outstanding senior unsecured notes.

Aflac is issuing the senior unsecured notes in advance of the March 2020 maturity of $550 million of senior unsecured notes, Fitch explained.

The agency said it expects any increase in the company's financial leverage ratio, currently about 24%, to be temporary.

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, Fitch 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, the agency said.

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