Debt info

Philips' rating

 

Philips' existing long-term debt is rated Baa1 by Moody's, BBB+ by Standard & Poor's and A- by Fitch (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
Standard & Poor's
BBB+
A - 2
Stable
Moody's
Baa1
P - 2
Stable
Fitch
A-
WD
Stable

Recent events

 

Issue of €500,000,000 Floating Rate Notes due 6 September 2019 and €500,000,000 0.500% notes due 6 September 2023 – Prospectus dated 4 September 2017.

Debt maturity

 

Characteristics of long-term debt as per Q3, 2017
 

  • Total net debt position of EUR 3.7 billion
  • Maturities up to 2042
  • Average tenor of long-term debt is 10.1 years3
  • No financial covenants
  • On June 28, 2017, Royal Philips announced a EUR 1.5 billion share buyback program. Philips started the program in the third quarter of 2017, and intends to complete it in two years. Long term debt includes forward transactions entered into as part of this program, to be settled at future dates over the course of the program.
  • On August 31, 2017, Royal Philips announced the successful pricing of its issue of EUR 500 million floating rate notes due 2019 and EUR 500 million fixed rate notes due 2023.

    3Based on long-term debt only, excludes short-term debt portion 
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.

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

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 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