KEY RATING DRIVERS
Aflac intends to use the net proceeds from this offering to redeem all or a portion of its
Aflac's ratings reflect the company's extremely strong competitive position in the supplemental accident and health insurance markets in
[Key rating triggers that could result in a downgrade include:
--A downgrade of Fitch's sovereign rating (local currency) of Japan to 'A-' or lower (currently 'A'/Outlook Negative);
--Significant investment impairments or losses in Aflac's capital position;
--A decline in Aflac's run-rate pre-tax operating margin below 17% in
--A significant increase in either operating (greater than 16x) or financial leverage (greater than 30%);
--NAIC RBC less than 400%.
An upgrade of Aflac is unlikely in the near term, given Japan's Long-Term Local Currency IDR and Outlook of 'A'/Outlook Negative.]
Fitch currently rates Aflac as follows:
--Long-Term IDR at 'A'; Stable Outlook;
--1.84% Samurai notes due
--2.26% Uridashi notes due
--IFS 'A+'; Negative Outlook.
Date of Relevant Rating Committee:
Additional information is available on www.fitchratings.com.
Insurance Rating Methodology (pub.
+81 3 3288 2781
Source: Fitch Ratings