Investor Relations

Debt info

Philips' rating

 

Philips’ existing long-term debt is rated A- by Fitch, Baa1 by Moody’s and BBB+ by Standard & Poor’s (all with stable outlook). 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
Fitch
A-
WD
Stable
Moody's
Baa1
P - 2
Stable
Standard & Poor's
BBB+
A - 2
Stable

Recent events

 

Issue of € 500,000,000  0.750% notes due 2 May 2024 and € 500,000,000 1.375% notes due 2 May 2028 – Prospectus dated 26 April 2018.

Debt maturity

 

Characteristics of long-term debt

  • Total net debt position of EUR 2.7 billion
  • Maturities up to 2042
  • Average tenor of long-term debt is 11.8 years3
  • No financial covenants
  • On March 27, 2018, Philips announced the early redemption of all 2022 bonds (USD 1,000 million) to be completed on April 26, 2018. Accordingly these bonds have been reclassified to short term debt per end of March 2018
Debt maturity Q1 2018

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

2 Debt includes forward transactions entered into as part of a EUR 1.5 billion share buyback program Royal Philips announced on June 28, 2017

3 Based on long-term debt only, excludes short-term debt portion and Share buyback forward transactions

The profile of the outstanding bonds is reflected in the table below
Outstanding bonds
Interest rate
Issue date
Maturity
EUR 500 million
3M Euribor + 20bps
2017
2019
EUR 500 million
0.500%
2017
2023
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 2025.

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 2023
Financial ratio covenants
None
MAC clauses
None

Debt / Equity ratio

Debt / Equity ratio

Contingent liabilities