AM Best has assigned Long-Term Issue Credit Ratings (Long-Term IR) of “a” (Excellent) to Aflac Incorporated’s (Aflac) (Columbus, GA) [NYSE: AFL] newly issued senior unsecured notes (see detailed list below). The outlook assigned to these Credit Ratings (ratings) is stable. All other ratings of Aflac and its subsidiaries are unchanged.

AM Best expects the net proceeds to be used for general corporate purposes. While AM Best expects the debt issuance to have a modest impact on Aflac’s financial leverage, with adjusted financial leverage of approximately 25% and a continued strong interest coverage ratio, these metrics remain well within AM Best’s guidelines for the organization’s current ratings. AM Best notes that Aflac maintained ample liquidity and strong financial flexibility at year-end 2023. Aflac also maintains other sources of contingent liquidity in its unsecured revolving credit facilities of and has access to borrowing limit from the Federal Home Loan Bank of Atlanta.

The Long-Term IRs of “a” (Excellent) have been assigned with a stable outlook to the following senior unsecured notes issued by Aflac:

-- JPY 27.9 billion 1.412% due March 20, 2031

-- JPY 13.0 billion 1.048% due March 21, 2029

-- JPY 7.70 billion 1.682% due March 21, 2034

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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