AM Best Assigns Issue Credit Ratings to Aflac Incorporated’s Senior Unsecured Notes
OLDWICK, N.J.--(BUSINESS WIRE)--Dec 16, 2019--
AM Best has assigned Long-Term Issue Credit Ratings (Long-Term IR) of “a-” to the new yen-denominated senior notes of Aflac Incorporated (Aflac) (Columbus, GA) (NYSE: AFL), which total JPY 38.0 billion. The offering consists of JPY 12.6 billion of 0.5% senior unsecured notes due 2029; JPY 9.3 billion of 0.843% senior unsecured notes due 2031; JPY 9.8 billion of 0.934% senior unsecured notes due 2034; and JPY 6.3 billion of 1.122% senior unsecured notes due 2039. The outlook assigned to these Long-Term IRs is stable. Aflac’s existing Long-Term Issuer Credit Ratings remain unchanged.
Aflac anticipates the proceeds from the sale of the notes to fund all or a portion of the redemption of its 4% senior unsecured notes due 2022, of which $350 million of the principal amount is outstanding. The company intends to use proceeds in excess of the redemption price, if any, for general corporate purposes. Aflac’s capitalization and liquidity provide financial flexibility and support for the overall enterprise. Aflac’s financial leverage, which was slightly above 21% at Sept. 30, 2019, will increase modestly to just above 22% with the new issuance. Upon redemption of the 4% senior unsecured notes, AM Best expects financial leverage to return to prior levels. Additionally, Aflac’s interest coverage is expected to remain near 22 times.
Aflac’s Credit Ratings, which were affirmed on April 24, 2019, recognize its diverse portfolio of supplemental health products in the United States and Japan. These products generate strong earnings and steady cash flows to the holding company, supporting its cash position and interest coverage measures.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 12/16/2019 06:59 PM/DISC: 12/16/2019 06:59 PM