Nokia 2015 Annual Report Download - page 181

179
Financial statements
NOKIA IN 2015
Financial credit risk
Financial instruments contain an element of risk resulting from changes in the market price due to counterparties becoming less creditworthy
orrisk of loss due to counterparties being unable to meet their obligations. Financial credit risk is measured and monitored centrally by
GroupTreasury. Financial credit risk is managed actively by limiting counterparties to a sucient number of major banks and nancial
institutions, andby monitoring the creditworthiness and the size of exposure continuously. Additionally, the Group enters into netting
arrangements with allmajor counterparties, which give the Group the right to oset in the event that the counterparty would not be able to
fulll its obligations. The Group enters into collateral agreements with certain counterparties, which require counterparties to post collateral
against derivative receivables.
Investment decisions are based on strict creditworthiness and maturity criteria as dened in the Treasury-related policies and procedures.
Asaresult of this investment policy approach and active management of outstanding investment exposures, the Group has not been subject
toany material credit losses in its nancial investments in the years presented.
Breakdown of outstanding xed-income and money-market investments by sector and credit rating grade ranked to Moody’s rating categories
at December 31:
EURm Rating(1)
Due within
3 months
Due between 3
and 12 months
Due between
1 and 3 years
Due between
3 and 5 years
Due beyond
5 years Total(2)
2015
Banks Aaa 3 269 3 269
Aa1-Aa3 93 94 187
A1-A3 280 320 100 700
Baa1-Baa3 738 475 90 50 1 353
Non-rated 12 12
Governments Aaa 267 252 444 113 1 076
Aa1-Aa3 10 140 150
A1-A3 309 198 257 50 814
Baa1-Baa3 12 23 35
Other Baa1-Baa3 12 12
Total 4 713 1 354 632 746 163 7 608
2014
Banks Aaa 1 227 1 227
Aa1-Aa3 162 162
A1-A3 587 330 917
Baa1-Baa3 332 325 1 658
Non-rated 108 2 110
Governments Aaa 130 556 423 26 385 1 520
Aa1-Aa3 50 421 25 88 584
Other Baa1-Baa3 11 11
Total 2 596 881 1 174 51 487 5 189
(1) Bank Parent Company ratings are used here for bank groups. In some emerging markets countries, actual bank subsidiary ratings may dier from the Parent Company rating.
(2) Fixed-income and money-market investments include term deposits, structured deposits, investments in liquidity funds and investments in xed income instruments classied as available-for-sale
investments and investments at fair value through prot and loss. Liquidity funds invested solely in government securities are included under Governments. Other liquidity funds are included
underBanks. Fixed-income and money-market investments include EUR 5 million of restricted investments (EUR 11 million in 2014). These are restricted nancial assets under various contractual
orlegalobligations.
98% (98% in 2014) of the Group’s cash at bank of EUR 2 242 million (EUR 2 527 million in 2014) is held with banks of investment grade
creditrating.