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.

BT's credit rating

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.

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

  • Bond listing prospectus - November 2019

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    * For the hybrid bond issued 18 Feb 2020, this date represents the non-call date, not maturity date

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

    Delaware Trust Company
    251 Little Falls Drive
    Wilmington, DE 19808-1674

    Phone:
    Toll free: 1-877-374-6010
    Local/International: 302-636-5404

    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.lawdebenture.com

    Principal Paying Agent

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

    Telephone: +44 (0)20 7500 5000