Level of indebtedness

Swisscom pursues a finance policy, which provides a maximum net debt/EBITDA ratio of around 2.1.

Credit ratings and financing

With 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 for a broadly diversified debt portfolio, taking particular care to balance maturities and spread financing instruments, markets and currencies.

Swisscom’s solid financial standing enabled unrestricted access to money and capital markets also in 2013. In 2013 Swisscom raised borrowings of EUR 800 million with a term of seven years to refinance existing debts. Net debt fell by CHF 0.3 billion to CHF 7.8 billion, corresponding to a net debt/EBITDA ratio of 1.8. Around 80% of financial liabilities have a term to maturity of more than one year. As at 31 December 2013, financial liabilities with a term of one year or less amounted to CHF 1.7 billion. Average interest expense on financial liabilities is 2.4%, 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.

Ongoing dialogue with the capital market

Swisscom pursues an open and ongoing information policy vis-à-vis the general public and the capital markets. It publishes comprehensive financial information on a quarterly basis. Swisscom also meets investors regularly throughout the year, presents its financial results at analysts’ meetings and road shows, attends expert conferences for financial analysts and investors, and keeps its shareholders regularly informed about its business through press releases and shareholder letters.