ECCB 2014-2015 Annual Report and Statement of Accounts - page 85

Eastern Caribbean Central Bank
Notes to Consolidated Financial Statements
March 31, 2015
(expressed in Eastern Caribbean dollars)
30
3. Financial risk management…continued
b) Credit risk…continued
Credit risk measurement and mitigation policies…continued
Available-for-sale investment securities and money market instruments and money at
call…continued
The investment guidelines, which are approved by the Board of Directors, stipulate the limits on
the level of credit risk by borrower, product, industry, sector and country. They also stipulate the
minimum required ratings issued by Moody’s or another recognized rating agency for its
international investments. The Bank further manages this risk by ensuring that business is only
conducted with its approved banks and by monitoring those banks’ deposit ratings via rating
agencies. The global custodian is also monitored daily and periodically reviewed.
The table below presents an analysis of the Bank’s foreign debt securities (note 8) and money
market instruments and money at call (note 5) by rating agency designation at March 31, 2015 and
March 31, 2014, based on Moody’s or equivalent:
Available-for-sale securities
2015 2014
Rated (Moody’s)
Foreign securities $ $
Aaa 2,179,360,442 2,105,240,347
Aa1 209,441,928 –
Aa3 72,763,471 –
A1 66,335,060 –
Aa - 170,938,040
2,527,900,901 2,276,178,387
2015 2014
Unrated
$ $
Domestic securities 421,686 421,686
421,686 421,686
Money market instruments and money at call
2015 2014
Rated (Moody’s)
Commercial paper $ $
A1 130,909,815 295,985,194
Aa3 107,384,937 -
Aa1 13,498,427 -
251,793,179 295,985,194
Eastern Caribbean Central Bank
Notes t C nsolidated Fi ancial Stat ments
March 31, 2015
(expressed in Eastern Caribbean dollars)
30
3. Financial risk manag ment…continued
b) Cred t risk…continued
Cred t risk measur me t and mitigation policies …continued
Avai able for-sale investment securities and money market instruments and money at
call …continued
The investment gu delines, w ich re approved by the Board of Directors, stipulate the limits on
the level of credit risk y b rrowe , product, industry, sector and country. They also stipulat the
mini um required rating issued by Moody’s or another recognized ratin agency for its
international investments. The Bank further manages this risk by ensuring that business is only
conducted w th its approved banks and by mon toring those banks’ deposi ratings vi rating
agencies. The global custodian i als m nitored daily and per odically r viewed.
The table below presents analysis of the Bank’s foreign debt securities (note 8) and money
market instruments and money t call (note 5) by rating agency designation at March 31, 2015 and
March 31, 2014, based on Moody’s or equivalent:
Avai able-for-sale securities
2015 2014
Rated (Moody’s)
Foreign securities $ $
Aaa 2,179,360,442 2,105,240,347
Aa1 209,441,928 –
Aa3 2,763,471 –
A1 66,335,060 –
Aa - 170,938,040
,527,90 ,901 2,276,17 ,387
2015 2014
Unrated
$ $
Domesti securities 421,686 421,686
421,686 421,686
Money market instruments and money t call
2015 2014
Rated (Moody’s)
Commerci l paper $ $
A1 13 ,909,815 2 5,985,194
Aa3 107,384,937 -
Aa1 13,498,427 -
251,793,179 2 5,985,194
ECCB ANNUAL REPORT 2014/2015 71
EASTERN CARIBBEAN CENTRAL BANK
3. Financial risk management…continued
b) Credit risk…continued
Credit risk measurement and mitigation policies…continued
Available-for-sale investment securities and money market instruments and money at call…continued
The investment guidelines, which are approved by the Board of Directors, stipulate the limits on the level of credit
risk by borrower, product, industry, sector and country. They also stipulate the minimum required ratings issued
by Moody’s or another recognized rating agency for its international investments. The Bank further manages this
risk by ensuring that business is only conducted with its approved banks and by monitoring those banks’ deposit
ratings via rating agencies. The global custodian is also monitored daily and periodically reviewed.
table below presents an analysis of the Bank’s foreign debt securities (note 8) and m n y market instruments
and money at call (note 5) by rating agency designation at M rch 31, 2015 and March 31, 2014, based on Moody’s
or equivalent:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars) March 31, 2015