S&P assigns Aflac notes A-

S&P said it assigned its A- issue credit rating to Aflac Inc.’s offering of yen-denominated senior notes. Aflac is selling ¥38 billion of senior notes in various tenors. The notes will be unsecured and unsubordinated obligations of Aflac and will rank equal in right of payment with other senior unsecured debt.

Proceeds are expected to be used to prefund all or a portion of its 4% senior notes due February 2022, of which $350 million principal are outstanding or for general corporate purposes.

“Post this issuance, we expect financial leverage to be temporarily elevated, though financial leverage and fixed-charge coverage should remain within our expectations of less than 25% and greater than 12x, respectively,” S&P said in a press release.

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