Find out how we maintain a strong balance sheet and an investment-grade credit rating.
We have a clear and effective funding strategy to fund the group through a mix of debt and equity, while maintaining a solid investment grade rating. We look to ensure that we have adequate liquidity to meet our medium term needs through cash, bank facilities and cashflow, so that in the event of difficult market conditions or times of change, we have the liquid resources we need.
When it comes to long-term debt, we’re funded via GBP and Euro denominated corporate bonds, as well as our $1bn Revolving Credit Facility (maturing in 2027). We also use derivatives to convert some of our debt to GBP and manage foreign currency exposure.
See Pearson’s 2024 Social Bond Framework
PEARSON OFFERING CIRCULAR – SEP-24
Net debt (as of 31 December 2023)
All figures in £ millions | 2023 |
---|---|
Cash and cash equivalents | 312 |
Derivative financial instruments | 5 |
Bank loans and overdrafts | (3) |
Bonds | (611) |
Revolving credit facility | 0 |
Investment in finance lease receivable | 100 |
Lease liabilities | (547) |
Net debt | (744) |
Bond maturities
Credit ratings:
Moody’s: Baa2 (stable outlook) |
Fitch: BBB (stable outlook) |
Social Bond Framework
Find out more about our social bond that’s solely focused on education.