FAQ
Has Bertelsmann issued bonds?
In the past, Bertelsmann has repeatedly issued bonds and comparable instruments through the capital markets or through private placements.
What is a credit rating?
A credit rating is a classification of the creditworthiness of a borrower or a special debt instrument. The former is called an issuer rating, and the latter an issuance rating.
What is the credit rating of Bertelsmann AG?
Since June 2002, Bertelsmann has been rated by the rating agencies Standard & Poor's and Moody's. S & P current rating is BBB/stable/A-2 and Moody's rating is Baa2/stable/P-2 respectively.
What are the financial goals of Bertelsmann?
For a long time, Bertelsmann has been oriented towards financial goals that refer to capital structure and debt. They ensure a balanced relationship between financial security, return on equity and growth and are oriented towards the requirements of the "BBB+/Baa1" credit rating. Important financial goals for Bertelsmann are the Leverage Factor (Net financial debt plus Pension provisions and Profit participation capital / Operating EBITDA)* < 2.3, the Coverage Ratio (Operating EBITDA / Financial result)* > 4.0, and the Equity Ratio (Equity / Total assets) > 25%.
From fiscal year 2008, the operating lease factor will be integrated into the leverage factor, thereby increasing the level of economic debt by the net present value of operating leases. The newly combined leverage factor has a maximum value of 3,0.
These self-imposed financial goals reflect the conservative financial policy of the company and also take into account the existence of other financial obligations such as obligations from operating leasing contracts. The combined leverage factor for fiscal year 2008 was 3.2.
* After modification
What financial instruments does Bertelsmann use for External Financing?
Bertelsmann uses various financial instruments to diversify its financing sources. Besides the issuance of bonds and comparable instruments through the capital markets or through private placements, Bertelsmann has access to a Syndicated Credit Facility with a 7 year term for a volume of EUR 1.2 billion. When needed, it can be drawn by Bertelsmann AG or its foreign financing companies.
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