IBERSOL | 2016 Annual Report - page 224

CONSOLIDATED FINANCIAL STATEMENTS
Deposits and other financial investments are spread over several credit institutions; therefore
there is not a concentration of these financial assets.
The ratings of the major credit institutions where Ibersol Group has its deposits on December
31, 2016 and 2015 are presented as follows:
Year 2016
Year 2015
Agency
Deposits Rating
Deposits Rating
Standard & Poor´s
243,424 A-
Standard & Poor´s
6,026,676 BBB+
536,022 BBB+
Standard & Poor´s
10,979,707 BB+
621,658 BB+
Standard & Poor´s
756,940 B
6,192,649 B+
Standard & Poor´s
3,909,284 BB-
Moody's
932,315 Caa1
809,708 Caa1
Moody's
3,880,101 Baa2
Moody's
1,968,656 Baa3
Unavailable (Angola)
8,334,192 n/a
3,115,250 n/a
Deposits in Angola are distributed by three of the largest commercial banks in Angola - BFA,
BCGA and BAI - that do not have a rating. In addition, part of the deposits of about 2.5 million
euros, are in the National Bank of Angola.
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. Treasury needs are mana-
ged based on the annual plan that is reviewed every quarter and adjusted daily. Related
with the dynamics of the underlying business operations, the Group’s treasury strives to
maintain the floating debt flexible by maintaining 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 127 million euros, compared with 89
million euros in current assets. This disequilibrium is, on one hand, a financial characte-
ristic of this business and, on the other hand, due to the use of commercial paper pro-
grammes in which 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 expec-
ted in the year 2017 the renewal of the commercial paper programmes (7.250.000 euros).
However, the expected operating cash flows and, if necessary, contracted credit lines, on
the amounts of which have not yet been used, are sufficient to settle current liabilities.
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