It can... badly. Have a look here, fig. 4.32, 4.33. And that's 3Vrms into 1K.
That's still around 0.01% THD, which isn't audible, and its worst at extremely high frequencies (where it really, really isn't audible). Sure, it's pretty mediocre by modern electronics standards, but you aren't going to hear any serious flaws in your music just because the preamp is adding 0.005%THD to most of the spectrum and 0.02% to the top octave.
Edited by cjl - 5/8/14 at 6:02pm