AM Best Assigns Issue Credit Ratings to Aflac Incorporated’s Senior Unsecured Notes
April 16 2020 - 10:39AM
Business Wire
AM Best has assigned Long-Term Issue Credit Ratings
(Long-Term IR) of “a-” to the new yen-denominated senior unsecured
notes of Aflac Incorporated (Aflac) (Columbus, GA) [NYSE: AFL],
which total JPY 57.0 billion (USD 541.0 million as of March 6,
2020). The offering consists of JPY 12.4 billion of 0.3% senior
unsecured notes due 2025; JPY 13.3 billion of 0.55% senior
unsecured notes due 2030; JPY 20.7 billion of 0.75% senior
unsecured notes due 2032; and JPY 10.6 billion of 0.83% senior
unsecured notes due 2035.
In addition, AM Best has assigned a Long-Term IR of “a-” to the
USD 1.0 billion 3.6% senior unsecured notes due 2030 also issued by
Aflac. The outlook assigned to these Long-Term IRs is stable.
Aflac’s existing Long-Term Issuer Credit Ratings remain
unchanged.
The use of the proceeds is for general corporate purposes. AM
Best believes these issuances also serve to bolster Aflac’s capital
structure and liquidity profile, given there are no immediate debt
positions that are coming due, and add to its already ample
financial flexibility and support for the overall enterprise. The
most recent debt issues provide additional contingent liquidity
given the current economic environmental challenges. Aflac’s
adjusted financial leverage was approximately 22% at year-end 2019,
and increased modestly to just above 25% with the new issuances;
this also factors in the redemption of the 4% 2022 senior unsecured
notes earlier this year.
Interest coverage has historically been high given the
organization’s favorable earnings trends and remains more than
adequate. AM Best expects financial leverage to return to prior
levels with capital expansion over the coming year.
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 Guide to 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 analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200416005591/en/
Joseph Zazzera Director +1 908 439 2200, ext. 5797
joseph.zazzera@ambest.com Sally Rosen Senior Director +1 908 439
2200, ext. 5280 sally.rosen@ambest.com Christopher Sharkey
Manager, Public Relations +1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com Jim Peavy Director, Public
Relations +1 908 439 2200, ext. 5644 james.peavy@ambest.com
AFLAC (NYSE:AFL)
Historical Stock Chart
From Mar 2024 to Apr 2024
AFLAC (NYSE:AFL)
Historical Stock Chart
From Apr 2023 to Apr 2024