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 4.3 billion
  • Maturities up to 2042
  • Average tenor of long-term debt is 11 years
  • No financial covenants
  • EUR 1.8 billion standby facility matures in February 2018

Debt maturity profile as of March 2016

Amounts in EUR millions
1 Short term debt includes USD 1.3 billion loan related to Volcano acquisition and local credit facilities that are being rolled forward on a continuous basis
In March 2012, Philips placed a total of USD 1.5 billion of new Philips Senior Notes. Philips used the net proceeds to redeem the 4.625% Notes due 2013 (repaid on April 10th 2012), and repaid the USD 143 million bond that matured in August 2013. The remainder has been used for general corporate purposes including other debt reductions.
Outstanding bonds
Interest rate
Issue date
Maturity
USD 1,250 million
5.750%
2008
2018
USD 1,000 million
3.750%
2012
2022
USD 103 million
7.125%
1995
2025
USD 99 million
7.750%
1995
2025
USD 166 million
7.200%
1996
2026
USD 1,000 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

Contingent liabilities