Debt investors

Like most large businesses, BT funds its operations
through equity and debt as well as from funds generated
from its trading activities. Below are details of BT's listed
debt (debt quoted and traded on stock exchanges) and
credit ratings.

Goal

We target a BBB+/Baa1 credit rating over the medium term.

BT's credit rating

 
Term Moody's Standard & Poor's Fitch
Long Term Baa2 BBB BBB
Short Term P-2 A-2 F-2

More information on credit ratings 

Ratings represent an evaluation of credit quality, conducted by independent financial analysis firms. Credit ratings and research can help investors assess marketplace value and degree of investment risk.

Standard & Poor's(S&P), Moody's and Fitch are leading global credit rating, research and risk analysis operations. Their highest long-term rating is AAA/Aaa and the lowest is C. Moody's uses numerical modifiers (1, 2, 3) in each rating classification while S&P and Fitch use plus and minus signs.

Short-term ratings by these agencies assess the ability of the company to repay short-term debt obligations. A1/P1/F1 ratings (highest short-term rating) by S&P, Moody's and Fitch respectively indicate a superior ability to repay short-term debt obligations; A2/P2/F2 indicates satisfactory ability and A3/P3/F3 indicates adequate ability to meet the short-term financial liabilities.

The same rating from different firms may not mean exactly the same thing. Each firm will use different techniques and subjective assessment in formulating ratings opinions.

Our Investor Relations team can be contacted on ir@bt.com.  

Financing strategy

The group funding policy is to raise and invest funds centrally to meet anticipated requirements using a combination of capital market bond issuance, commercial paper borrowing, committed borrowing facilities and investments. These are planned so as to mature at different stages in order to meet short, medium and long-term requirements. When market conditions allow, we believe that it’s prudent to pre-fund larger maturities. Our policy is to raise debt in markets/ currencies where there is strong investor demand and we get the best rate, if that is outside of the UK then we will swap the debt immediately into fixed sterling to mitigate currency risk. 

Summary charts of BT debt

Net debt

BT's listed debt

Sterling bonds

 

BONDS

ISIN

Outstanding
(£, m)

COUPON

FREQ.

MATURITY

Listing

BT Bond 2016 £700m

XS0123682758

700

7.5% + 1.25%

A

07-Dec-16

London

BT Bond 2017 £500m
(EMTN)

XS0306772939

500

6.625%

A

23-Jun-17

London

BT Bond 2020 £300m

XS0052067583

300

8.625%

A

26-Mar-20

London

BT Bond 2028 £600m

XS0097283096

600

5.75%

A

07-Dec-28

London

BT Bond 2037 £500m
(EMTN)

XS0306772699

500

6.375%

A

23-Jun-37

London

Dollar bonds

 

BONDS

ISIN

Outstanding
($, m)

COUPON

FREQ

MATURITY

Listing

BT Bond 2015 $0.75bn

US111021AG69

750

2%

S/A

22-Jun-15

London

BT Bond 2016 $0.6bn US111021AH43 600 1.625% S/A 28-Jun-16 London
BT Bond 2017 $0.5bn US111021AJ09 500 1.25% S/A 14-Feb-17 London

BT Bond 2018 $1.1bn

US11102AAA97

1,100

5.95%

S/A

15-Jan-18

London

BT Bond 2019 $0.8bn US111021AK71 800 2.35% S/A 14-Feb-19 London

BT Bond 2030 $2.8bn

US111021AE12

2,670

8.625% + 1%

S/A

15-Dec-30

London

Euro bonds

 

BONDS

ISIN

Outstanding
(€, m)

COUPON

FREQ

MATURITY

Listing

BT Bond 2015 €1bn
(EMTN)
XS0372358902 1,000 6.5% A 7-Jul-15 London
BT Bond 2019 €1bn
(EMTN)
XS1075430741 1,000 1.125% A 10-Jun-19 London

Index linked note

 

Index Linked Note

ISIN

Outstanding
(£, m)

COUPON

FREQ

MATURITY

Listing

Index Linked Notes 2025 £250m
(EMTN issued
25-Apr-00)

XS0110081782

250

3.5% index
linked

S/A

25-Apr-25

London

Trustee and Paying Agent information

The Trustee and Paying Agent for the US dollar bonds are:

Law Debenture Trust Company of New York
400 Madison Avenue
New York
New York 10017

Telephone: +1 212 750 6474
Fax: +1 212 750 1361
E-mail: new.york@lawdeb.com

The contact details for the Trustee and Principal Paying Agent for all other bonds issued by British Telecommunications plc and BT Finance B.V. are:

Trustee

The Law Debenture Trust Corporation plc
Fifth Floor
100 Wood Street
London EC2V 7EX

Telephone +44 (0)20 7606 5451
Fax +44 (0)20 7606 0643
www.lawdeb.co.uk

Principal Paying Agent

Citibank N.A.
Citigroup Centre
Canada Square
21st Floor - Paying Agency
London E14 5LB

Telephone: +44 (0)20 7500 5000