Annual Report and Consolidated Accounts 2015
The ratings of the major credit institutions where Ibersol group has its deposits on December 31,
2015 and 2014 are presented as follows:
Year 2015
Year 2014
Agency
Deposits Rating
Deposits Rating
Standard & Poor´s
536.022 BBB+
449.718 A
Standard & Poor´s
621.658 BB+
850.011 BBB
Standard & Poor´s
6.192.649 B+
8.559.348 BB-
Moody's
809.708 Caa1
2.171.404 Caa1
Unavailable (Angola)
3.115.250 n/a
930.413 n/a
The quality of financial assets not due or impaired is detailed in Note 15.
c) Liquidity risk
Liquidity risk management implies maintaining
a sufficient amount of cash and bank deposits,
the feasibility of consolidating the floating debt
through a suitable amount of credit facilities and
the capacity to liquidate market positions. Treas-
ury needs are managed based on the annual plan
that is reviewed every quarter and adjusted dai-
ly. Related with the dynamics of the underlying
business operations, the group’s treasury strives
to maintain the floating debt flexible by main-
taining credit lines available.
The Group considers that the short-term bank
loans are due on the renewal date and that the
commercial paper programmes matured on the
dates of denunciation.
At the end of the year, current liabilities reached
70 million euros, compared with 33 million euros
in current assets. This disequilibrium is, on one
hand, a financial characteristic of this business
and, on the other hand, due to the use of com-
mercial paper programmes in witch the Group
considers the maturity date as the renewal
date, regardless of its initial stated periods. In
order to ensure liquidity of the short term debt
it is expected in the year 2016 the renewal of
the commercial paper programmes (8.750.000
euros). However, in case of need, cash and cash
equivalents and cash flows from operations are
sufficient to settle current loans.
In the current situation, to lower bank loans the
company opted to increase financial debt ma-
turity and to maintain a significant share of the
short term debt. On December 31, 2015, the use
of short term liquidity cash flow support was
less than 1%. Investments in term deposits and
other application of 9.6 million euros, match 22%
of liabilities paid.
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