Debt financing and Credit rating
Debt financing
ASSA ABLOY has a centralized funding strategy where funds are raised mainly by ASSA ABLOY AB and ASSA ABLOY Financial Services AB. The aim is to utilize a variety of funding sources and distribute the maturities over time. In this way refinancing risk is managed, while the possibility to use excess cash to repay outstanding debt is retained.
The Group uses a minimum target of 18 months for the capital duration of the debt portfolio. At the end of 2024, the capital duration was 44 months. Issuances in debt capital markets are key tools in the funding strategy, and issuances of bonds are primarily done under the Global MTN Program. Long-term bank loans are used to further diversify the funding sources.
A list of major financing transactions is found in the section Debt Structure.
The graph below shows the current maturity profile. The maturity profile includes short-term borrowings in the form of short-term bank loans and issuances of Commercial Papers. Interest rate risk, is measured by calculating an overall interest rate duration for the debt portfolio. The average interest duration should range between 12 and 36 months. At year-end of 2024, the interest duration was 27 months.
Debt maturity profile as of Dec 31, 2024
| Year | Bonds | US PP | Commercial Paper | Bank financing | TOTAL |
| 2025 | 3 969 | 0 | 6 205 | 2 242 | 12 417 |
| 2026 | 8 143 | 0 | 9 310 | 17 452 | |
| 2027 | 6 074 | 0 | 1 061 | 7 134 | |
| 2028 | 2 025 | 0 | 1 835 | 3 860 | |
| 2029 | 3 115 | 0 | 2 197 | 5 312 | |
| 2030 | 9 125 | 0 | 471 | 9 596 | |
| 2031 | 1 214 | 0 | 471 | 1 685 | |
| 2032 | 968 | 0 | 471 | 1 440 | |
| 2033 | 0 | 0 | 471 | 471 | |
| 2034 | 1 146 | 0 | 0 | 1 146 | |
| 2035 | 6 879 | 0 | 0 | 6 879 | |
| 2035 | 0 | 0 | 0 | 0 |
Credit rating
In order to ensure access to debt capital markets at all times, it is essential to maintain a solid investment grade credit rating. ASSA ABLOY currently has both a long-term and a short-term rating from Standard & Poors and a short-term rating from Moody’s.
Rating history
S&P
| Long-term Rating | Watch | Date | Outlook |
|---|---|---|---|
| A- | 4 July 2023 | Stable | |
| A- | 4 May 2020 | Negative | |
| A- | 6 Apr 2011 | Stable | |
| A- | Negative Creditwatch | 15 Dec 2010 | |
| A- | 21 Sep 2001 | Stable | |
| Short-term Rating | Watch | Date | Outlook |
| A-2 | 21 Sep 2001 | Stable |
Moody's
| Short-term Rating | Watch | Date | Outlook |
|---|---|---|---|
| P-2 | 15 May 2001 | Stable |