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. At 31 December 2024, the Group had available undrawn $1bn Revolving Credit Facility (RCF) which matures in February 2028, but which has options to extend the maturity to February 2030. 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 2024)
| All figures in £ millions | 2024 |
|---|---|
| Cash and cash equivalents | 543 |
| Bank loans and overdrafts | - |
| Derivative financial instruments | (7) |
| Bonds | (955) |
| Revolving credit facility | 0 |
| Investment in finance lease receivable | 83 |
| Lease liabilities | (517) |
| Net debt | (853) |
Bond maturities
Credit ratings:
| Moody’s: Baa2 (stable outlook) |
| Fitch: BBB (stable outlook) |
