UPDATE: Morgan Stanley Downgrades Aflac to Equal-Weight

Morgan Stanley is out with its report today on Aflac (NYSE: AFL), downgrading AFL from Overweight to Equal-weight.

In a note to clients, Morgan Stanley writes, "With an RBC ratio of 520%, the consensus view is that Aflac is flush with excess capital – as much as $2.0 billion by some estimates. Our review of its Japan SMR leads us to a different conclusion – its ratio of 512% (old method: 919%) is less robust, both in absolute and relative terms, and we expect the de-risking initiatives being executed could place further pressure on the ratio. We expect this will limit capital management opportunities for the company. We downgrade AFL to EW."

At the time of posting, shares of AFL were trading at $48.53, down 2.14% from Thursday's close.