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## INTEREST RA TE RISK 

In the normal course of business, the Corporation is exposed primarily to interest rate fluctuations risk as a result of loans and receivables that it grants, as well as loans payable that it contracts at variable interest rates. 

The Corporation keeps a close watch on interest rate fluctuations and, if warranted, uses derivative financial instruments such as interest rate swap contracts. As  at September 27, 2014 and September 28, 2013, there were no outstanding interest rate swap contracts. 

## CREDIT RISK 

## Loans and receivables / Guarantees 

The Corporation sells products to consumers and merchants in Canada. When it sells products, it gives merchants credit. In addition, to help certain merchants finance business acquisitions, the Corporation grants them long-term loans or guarantees loans obtained by them from financial institutions. Hence, the Corporation is subject to credit risk. 

T o mitigate such risk, the Corporation performs ongoing credit evaluations of its customers and has adopted a credit policy that defines the credit conditions to be met and the required guarantees. As at September 27, 2014 and September 28, 2013 , no customer accounted for over 10% of total loans and receivables. 

T o cover its credit risk, the Corporation holds guarantees over its clients' assets in the form of deposits, movable hypothecs on the Corporation stock and/or second hypothecs on their inventories, movable property , intangible assets and receivables. 

In recent years, the Corporation has not suffered any material losses related to credit risk. 

As at September 27, 2014, the maximum potential liability under guarantees provided amounted to $22.8 ($22.5 as at September 28, 2013 ) and no liability had been recognized as at that date. 

## Financial assets at fair value through net earnings 

With regard to its financial assets at fair value through net earnings, consisting of foreign exchange forward contracts, the Corporation is subject to credit risk when these contracts result in receivables from financial institutions. In accordance with its risk management policy, the Corporation entered into these agreements with major Canadian financial institutions to reduce its credit risk. 

As at September 27, 2014 and September 28, 2013 , the Corporation was not exposed to credit risk in respect of its foreign exchange forward contracts, as they resulted in amounts payable. 

## LIQUIDITY  RISK 

The Corporation is exposed to liquidity risk primarily as a result of its debt and trade accounts payable. 

The Corporation regularly assesses its cash position and feels that its cash flows from operating activities are sufficient to fully cover its cash requirements as regards its financing activities. Its Series A Notes, its revolving credit facility and its Series B Notes mature only in 2015, 2019 and 2035, respectively . The Corporation also has an unused authorized balance of $208.3 on its revolving credit facility. 

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The event after the reporting period is not taken into consideration in the above table (see note 31). 

