previous quarters and previous year. Should one or more external fund managers show a significantly poor performance for a period of three or more months, or should a sudden change in an external fund manager’s performance trend be observed in a specific month, the external fund manager will be contacted and a written explanation of the performance trend will be required. If the underperformance persists, the ACI will take the necessary measures to ensure that a strategy and corrective action for the underperforming external fund manager are put in place. The annual financial statements will disclose details of all investments in accordance with International Public Sector Accounting Standards (IPSAS) and investments will accordingly be subject to audit. In addition, Financial Regulation 6.6 stipulates that the financial management report (FMR) prepared for each financial period will include a report on investments. CREDIT LIMITS To ensure credit quality and consistency of credit evaluation, the Organization relies on approved credit rating agencies to determine creditworthiness. As of 2015, the approved agencies are Moody’s, Standard and Poor’s and Fitch IBCA. STANDARD & POOR’S FITCH Short-term Long-term term Aaa AAA AAA Aa1 AA+ AA+ A-1+ F1+ Aa2 AA AA P-1 Aa3 AA- AA- A1 A+ A+ A-1 F1 Investment Grade A2 A A A3 A- A- P-2 A-2 F2 Baa1 BBB+ BBB+ Baa2 BBB BBB P-3 A-3 F3 Baa3 BBB- BBB- Ba1 BB+ BB+ Ba2 BB BB Ba3 BB- BB- B B B1 B+ B+ B2 B B High B3 B- B- Caa1 Not prime CCC+ Caa2 CCC Caa3 CCC- C CCC C CC Ca C C DDD D / / In default The descriptions of the credit ratings in the table above have been simplified to refer only to whether the credit rating is investment grade or high yield. It is understood that the higher the grade the lower the perceived credit risk. However, the descriptions related to groupings of ratings as reflected on the
previous quarters and previous year. Should one or more external fund managers show a significantly poor performance for a period of three or more months, or should a sudden change in an external fund manager’s performance trend be observed in a specific month, the external fund manager will be contacted and a written explanation of the performance trend will be required. If the underperformance persists, the ACI will take the necessary measures to ensure that a strategy and corrective action for the underperforming external fund manager are put in place. The annual financial statements will disclose details of all investments in accordance with International Public Sector Accounting Standards (IPSAS) and investments will accordingly be subject to audit. In addition, Financial Regulation 6.6 stipulates that the financial management report (FMR) prepared for each financial period will include a report on investments. CREDIT LIMITS To ensure credit quality and consistency of credit evaluation, the Organization relies on approved credit rating agencies to determine creditworthiness. As of 2015, the approved agencies are Moody’s, Standard and Poor’s and Fitch IBCA. STANDARD & POOR’S FITCH Short-term Long-term Aaa P-1 AAA A-1+ AAA F1+ Investment Grade Aa1 AA+ AA+ Aa2 AA AA Aa3 AA- AA- A1 A+ A-1 A+ F1 A2 A A A3 P-2 A- A-2 A- F2 Baa1 BBB+ BBB+ Baa2 P-3 BBB A-3 BBB F3 Baa3 BBB- BBB- Ba1 Not prime BB+ B BB+ B High Ba2 BB BB Ba3 BB- BB- B1 B+ B+ B2 B B B3 B- B- Caa1 CCC+ C CCC C Caa2 CCC Caa3 CCC- Ca CC C C D / DDD / In default The descriptions of the credit ratings in the table above have been simplified to refer only to whether the credit rating is investment grade or high yield. It is understood that the higher the grade the lower the perceived credit risk. However, the descriptions related to groupings of ratings as reflected on the term
wo_pbc_26_4_rev.docx