Level of indebtedness

Swisscom pursues a finance policy which limits the net debt / EBITDA ratio to a maximum of around 2.1. Net debt comprises financial liabilities less cash and cash equivalents, current financial assets and non-current, fixed-interest-bearing deposits.

As at 31 December 2014, net debt amounted to CHF 8.1 billion (prior year: CHF 7.8 billion), corresponding versus the prior year to an unchanged net debt / EBITDA ratio of 1.8.

Credit ratings and financing

With an A (stable) and A2 (stable) respectively, ­Swisscom enjoys good ratings with the Standard & Poor’s and Moody’s rating agencies. To avoid structural downgrading, ­Swisscom endeavours to raise financing at the level of ­Swisscom Ltd. ­Swisscom aims to have a broadly diversified debt portfolio. This involves paying particular attention to balancing maturities and a diversification of financing instruments, markets and currencies. ­Swisscom’s solid financial standing enabled unrestricted access to money and capital markets also in 2014.

As at 31 December 2014, ­Swisscom’s financial liabilities amounted to CHF 8.6 billion. Around 80% of financial liabilities have a term to maturity of more than one year. As at 31 December 2014, financial liabilities with a term of one year or less amounted to CHF 1.6 billion. 2014 average interest expense on all financial liabilities were 2.5%, and average term to maturity four years. A large share of the financial liabilities will fall due for repayment if a shareholder other than the Swiss Confederation can exercise control over ­Swisscom.

Listed debenture bonds

Swisscom has issued debenture bonds which are listed on the SIX Swiss Exchange (SIX) or the Irish stock exchange (ISE).

Bonds listed on the Six Swiss Exchange
In CHF million   Coupon   Payment   Expiring   Security number
Par value                
600   3.75%   19.07.2007 22.10.2007 1   19.07.2007   3,225,473
500   4.00%   17.09.2008   17.09.2015   4,515,633
1,425   3.25%   14.09.2009   14.09.2018   10,469,162
500   2.63%   31.08.2010   31.08.2022   11,469,537
500   1.75%   10.07.2012   10.07.2024   188,335,365
200   1.50%   14.07.2014   14.07.2026   24,777,613
160   1.50%   30.09.2014   28.09.2029   2,514,750
1 Reopening.
Bonds listed on the Irish Stock Exchange (ISE)
In EUR million   Coupon   Payment   Expiring   ISIN–no. 1
Par value                
500   2.00%   30.09.2013 1   30.09.2020   XS0972165848
500   1.88%   08.04.2014   08.09.2021   XS1051076922
1 The bonds have been issued through Lunar Funding V, an independent Irish repackaging-vehicle, and are secured by loan notes granted from Lunar V to Swisscom.