S&P gives A to Aflac notes

Standard & Poor’s said it assigned its A senior unsecured debt rating to Aflac Inc.’s (NYSE:AFL) expected senior notes issuance.

This expected debt offering of about $1 billion will comprise two series of senior notes due 2020 and 2025.

S&P said Aflac will use most of the proceeds to redeem $850 million of 8.5% senior notes due 2019. The current low interest rate environment makes it favorable for the company to redeem these notes before the maturity date, despite having to a pay a premium for early redemption.

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