AFL AFLAC Inc

A.M. Best Co. has assigned a debt rating of "a" to AFLAC, Inc.'s (NYSE: AFL) (Columbus, GA) new JPY 40 billion .71% senior unsecured notes, due 2010. This rating reflects AFLAC's sustained favorable capitalization, improving statutory and GAAP returns and its leading market position. The rating outlook is stable. AFLAC has a leading market position in the United States and Japan in the worksite supplemental health marketplace. Additionally, AFLAC has been able to successfully grow its surplus position over the past several years despite the payment of substantial stockholder dividends and its debt service requirements. The recently issued debt will be used for general corporate purposes, including the repayment of JPY 30 billion senior unsecured notes, maturing in October 2005. The balance of the funds will be used to help support AFLAC's expansion efforts. Immediately following the issuance of the debt AFLAC's leverage will increase somewhat; however, it presently maintains strong leverage and coverage ratios, primarily reflecting the low cost of its JPY-denominated debt issued in Japan. For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 1,050 health companies and A.M. Best groups, please visit http://www.ambest.com/health. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.