Debt info

Philips' rating

 

Philips' existing long-term debt is rated Baa1 (with stable outlook) by Moody's and BBB+ (with stable outlook) by Standard & Poor's. We are committed to a strong investment grade credit rating. There is no assurance that we will be able to achieve this goal and ratings are subject to change at any time.

Agency
Long-term
Short-term
Outlook
Standard & Poor's
BBB+
A - 2
Stable
Moody's
Baa1
P - 2
Stable

Debt maturity

 

Characteristics of long-term debt
 

  • Total net debt position of EUR 2.6 billion
  • Maturities up to 2042
  • Average tenor of long-term debt (excl. Philips Lighting) is 13.3 years 1
  • No financial covenants
  • Philips Lighting debt includes 5 year loans of EUR 740 million and USD 500 million
  • On December 20, 2016, Philips announced the early redemption of all 2018 bonds (USD 1,250 million) which was completed on January 20, 2017. 
  • Philips entered into a USD 1 billion credit facility with maturity date on December 29, 2017. Philips expects to prepay this facility in the course of 2017.
  • Per end of March, 2017, Philips had a EUR 1.8 billion standby facility, maturing in February 2018. On April 19, 2017, Philips announced that the EUR 1.8 billion Revolving Credit Facility has been substituted with a new EUR 1 billion facility maturing in April 2022. 

 

1 Based on long-term debt only, excludes short-term debt portion

Debt maturity profile as of March 2017

Amounts in EUR millions
Debt maturity Q1 2017

1 Short term debt includes local credit facilities that are being rolled forward on a continuous basis.

2 On April 19, 2017, Philips announced that the EUR 1.8 billion Revolving Credit Facility has been substituted with a new EUR 1 billion facility maturing in April 2022.

 

The profile of the outstanding bonds before the redemption is reflected in the table below
Outstanding bonds
Interest rate
Issue date
Maturity
USD 1,000 million
3.750%
2012
2022
USD 84 million
7.125%
1995
2025
USD 63 million
7.750%
1995
2025
USD 137 million
7.200%
1996
2026
USD 798 million
6.875%
2008
2038
USD 500 million
5.000%
2012
2042
In addition to the bonds, Philips has a fully drawn subordinated loan of EUR 200 million in place with final maturity in 2021.

Standby facility - EUR 1.0 billion Revolving Credit Facility

Key terms & conditions
Borrower
Royal Philips
Facility amount
EUR 1.0 billion
Purpose
  • General corporate purposes
  • Backstop for commercial paper program
Maturity
April 2022
Financial ratio covenants
None
MAC clauses
None

Debt / Equity ratio

Debt / Equity ratio

Contingent liabilities