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 3.3 billion
  • Maturities up to 2042
  • Average tenor of long-term debt (excl. Philips Lighting) is 9.4 years
  • No financial covenants
  • Philips Lighting debt includes 5 year loans of EUR 740 million and USD 500 million
  • On December 20th, 2016, Philips announced the early redemption of all 2018 bonds per January 20th, 2017. This resulted in a reclassification of USD 1,250 million of 2018 bonds from long-term to short-term debt per Q4 20161.

 

1 In Q1 2017 the reclassification from long-term to short-term debt will be reversed and the Notes will be redeemed in full.

Debt maturity profile as of December 2016

Amounts in EUR millions
Debt maturity Q4 2016
2 Short term debt includes local credit facilities that are being rolled forward on a continuous basis.
The profile of the outstanding bonds before the redemption is reflected in the table below
Outstanding bonds
Interest rate
Issue date
Maturity
USD 1,250 million
5.750%
2008
2018 (Jan 20, 2017)
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 1.8 billion Revolving Credit Facility

Key terms & conditions
Borrower
Royal Philips
Facility amount
EUR 1.8 billion
Purpose
  • General corporate purposes
  • Backstop for commercial paper program
Maturity
February 2018
Financial ratio covenants
None
MAC clauses
None

Debt / Equity ratio

Debt / Equity ratio

Contingent liabilities