Debt and credit rating
Sandvik has adopted a centralized funding strategy whereas funding is primarily raised by the parent company and Sandvik Treasury AB and distributed throughout the Group by subsidiary loans. The aim is to utilize a broad variety of funding sources and to distribute the maturities over time. To operate in the short term Capital markets, back-up facilities are in place.
In order to reduce the refinancing risk, the Group strives for an adequate distribution of maturity dates. At September 30, 2023, the average payback period was 3.4 years.
In Sandvik's finance policy, the liquidity and financing risks are regulated such that the Group's capital employed, less the cash, shall in addition to equity, pensions liabilities, deferred tax and long-term provisions be financed long-term.
Sandvik has long-term rating from Standard & Poor's of A- with negative outlook. The outlook was changed from stable to negative on 9 March 2023.
The short-term rating is A-2 and K1 on the domestic Nordic scale.