Twenty-First Century Fox 2005 Annual Report Download - page 92

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
Interest Expense, Net
Interest expense, net consists of
2005 2004 2003
For the years ended June 30, (in millions)
Interest income $ 200 $ 152 $ 127
Interest expense (767) (726) (677)
Interest capitalized 31 42 26
Interest expense, net $(536) $(532) $(524)
Ratings of Public Debt
The table below summarizes the Company’s credit ratings as of June 30, 2005.
Rating Agency Senior Debt Outlook
Moody’s Baa 3 Positive
Standard & Poor’s BBB - Positive
Original Currencies of Borrowings
Borrowing are payable in the following currencies:
2005 2004
As of June 30, (in millions)
United States Dollars $10,862 $ 9,752
€0 million (2004 €224 million) Euros — 272
A$150 million (2004 A$150 million) Australian Dollars 113 105
JPY 0 million (2004 JPY 3,132 million) Japanese Yen — 30
Other currencies 24 5
Total borrowings $10,999 $10,164
At June 30, 2005 the impact of foreign currency movements on borrowings was not material.
On June 27, 2003, NAI, a subsidiary of the Company entered into a new $1.75 billion Five Year Credit Agreement (the “Credit Agreement”)
with Citibank N.A., as administrative agent, JP Morgan Chase Bank, as syndication agent, and the lenders named therein. News Corporation,
FEG Holdings, Inc., Fox Entertainment Group, Inc., News America Marketing FSI, Inc., News Publishing Australia Limited and News Australia
Holdings Pty Limited are guarantors (the “Guarantors”) under the Credit Agreement. The Credit Agreement provides a $1.75 billion revolving
credit facility with a sub-limit of $600 million available for the issuance of letters of credit, and expires on June 30, 2008. Borrowings are in US
dollars only, while letters of credit are issuable in US dollars or Euros. The significant terms of the agreement include the requirement that the
Company maintain specific gearing and interest coverage ratios and limitations on secured indebtedness. The Company pays a facility fee of
0.20% regardless of facility usage. The Company pays interest for borrowings and a letter of credit fee of LIBOR plus 0.675%. The Company
pays additional fees of 0.125% if borrowings under the facility exceed 25% of the committed facility. The interest and fees are based on the
Company’s current debt rating. At June 30, 2005, letters of credit representing $168 million were issued under the Credit Agreement.
Total unused credit facilities as of June 30, 2005 and 2004 amounted to $1,668 million and $1,586 million, respectively.
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