140 / 174
126
ECCB ANNUAL REPORT 2016/2017
EASTERN CARIBBEAN CENTRAL BANK
NOTES TO THE FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars)
March 31, 2017
Eastern Caribbean Central Bank
Notes to the Financial Statements
March 31, 2017
(expressed in Eastern Caribbean dollars)
7. Financial instruments
...continued
b) Credit quality of financial assets
The credit quality of financial assets that are neither past due nor impaired are assessed using
external credit ratings.
Available-for-sale financial assets
Foreign investment securities held by the Bank are debt of governments with a country rating of
Aa
or better (by Moody’s or equivalent), or debt that carries the unconditional guarantee of
such governments, and included in the list of acceptable sovereign risks and debt of international
institutions that are spe
cifically listed in the Bank’s Investme
nt Guidelines. These securities are of
superior credit quality and protection of interest and principal is considered high.
Loans and receivables
Cash at banks and money market instruments are held at approved financial institutions which
have a minimum bank deposit rating of A1/P
-
1 M
oody’s or as measured by another international
rating agency. These financial institutions must be incorporated in one of the approved countries
listed in the Bank’s Investment G
uidelines. Other loans and receivables included in financial
assets are not rated.
Accounts receivable include amounts that are past due and for which the Bank has recognised a
specific allowance for doubtful receivables after the assessment.
The Bank does not have any other financial assets that are past due or impaired.