In 2013, the two credit rating agencies Moody’s and Standard & Poor’s upgraded Merck’s credit rating as an issuer of long-term and senior unsecured bonds. Moody’s raised Merck’s long-term issuer rating to “A3” with stable outlook, and in May 2013, Standard & Poor’s upgraded Merck’s rating to “A” with stable outlook. An overview of the development of Merck’s rating for the period from 2008 to 2013 is presented in the Report on Risks and Opportunities. Both ratings ensure that Merck will be able to benefit in the future from attractive financing terms.
Due to the reduction in debt as well as strong cash flows from operating activities, the ratio of net financial debt to cash flows from operating activities decreased from 0.8 on December 31, 2012 to 0.1 on December 31, 2013.
In September 2013, Merck increased the volume of its Debt Issuance Program to € 15 billion. The Debt Issuance Program forms the contractual basis for issuing bonds, thus giving the company flexibility in its issuing activities. It therefore represents an important element of the Group’s financing activities.
The development of key balance sheet figures is as follows:
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Merck Group | Key balance sheet figures |
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in % |
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Dec. 31, 2013 |
Dec. 31, 2012 |
Dec. 31, 2011 |
Dec. 31, 2010 |
Dec. 31, 2009 |
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Equity ratio |
Equity |
53.2 |
48.1 |
47.4 |
46.3 |
56.9 |
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Total assets |
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Asset ratio |
Non-current assets |
64.5 |
69.4 |
71.1 |
74.7 |
66.9 |
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Total assets |
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Asset coverage |
Equity |
82.4 |
69.4 |
66.7 |
62.0 |
85.1 |
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Non-current assets |
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Finance structure |
Current liabilities |
40.0 |
40.6 |
37.5 |
28.0 |
39.2 |
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Liabilities (total) |
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