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 3.9 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
  • USD 400 million debt was reclassified from long to short term related to early redemption of the debt as announced on September 20, 20161

 

1 In Q4 2016 the reclassification from LT to ST debt will be reversed and the final results of the tender offer as announced on October 19,2016, will be reflected. Approximately USD 285 million in aggregate principal amount of Notes was accepted for purchase (USD 202 million of 2038 Notes, USD 29 million of 2026 Notes, USD 54 million of 2025 Notes)

Debt maturity profile as of September 2016

Amounts in EUR millions
1 Short term debt includes local credit facilities that are being rolled forward on a continuous basis.
The profile of the outstanding bonds, after completion of the Tender offer per October 19, 2016, is reflected in the table below. For more information on the tender offer, please see the following press release.
Outstanding bonds
Interest rate
Issue date
Maturity
USD 1,250 million
5.750%
2008
2018
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

Contingent liabilities