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aia.gr Annual Report 2016
result of discounting liabilities and receivables of long term settlement. Such liabilities and receivables are
discounted using the prevailing pre-tax risk free rate which is affected by interest rates fluctuations. The
impact from possible future interest rates on the Company’s financial performance from liabilities of long
term settlement is presented below:
Interest rates fluctuation +1.00% 2016 +1.00% 2015
Grant of rights fee payable 440,745 370,005
Provision for major restoration expenses 152,288 -1.00% -1.00%
Total impact on interest expenses 593,034 (440,202) 137,710 (381,921)
507,715 (138,156)
(153,323) (520,077)
(593,525)
3.1.3 Price risk
Price risk is the risk of fluctuations in the value of assets and liabilities as a result of changes in market
prices. The Company’s exposure to equity securities price risk is limited to the investment in an unlisted
entity which represents less than 1.0% of total asset. The Company is not exposed to commodity price risk.
3.1.4 Credit risk
Credit risk arises from cash and cash equivalents held with banks, short term and long term held-to-
maturity financial assets and credit exposures from customers.
Cash and cash equivalents – Financial assets
For banks and financial institutions, only independently rated parties with minimum ratings described
below, as set out under the Master Facility Agreement between the Company and the European Investment
Bank (EIB), are acceptable. The Company could cooperate with banks or financial institutions or proceed
with the purchase of financial assets that satisfy the following criteria:
• Long term unsecured and unguaranteed debt should be rated at:
a. A3 or higher by Moody’s; or
b. A- or higher by S&P; or
c. A- or higher by Fitch
• The maturity date of an investment should not exceed the period of 2 years from the investment date
• Operates a branch in Greece or such other places as may be agreed between the Company and EIB; and
• Is acceptable by EIB
All cooperation banks are acceptable by EIB.
The analysis of financial assets and bank deposits’ balances based on credit ratings is presented in the
following table:
Held-to-maturity financial assets AAA to A- 2016 AAA to A- 2015
Available-for-sale financial assets 87,549,512 213,141,013
Bank deposits’ balances CCC to RD CCC to RD
Total 0 0 0 0
283,393,903 121,178,096
370,943,415 957,000 334,319,109 9,207,000
431,277 88,776
1,388,277
9,295,776
The above criteria are satisfied with respect to the Held-to-maturity financial assets and the Bank deposits’
balances. As regards the investment in the Available-for-sale financial asset, for which the above criteria
are not satisfied, the Company obtained the consent and waiver of EIB on 1/12/2016. Further information is
presented in Note 5.10 and Note 5.20.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
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result of discounting liabilities and receivables of long term settlement. Such liabilities and receivables are
discounted using the prevailing pre-tax risk free rate which is affected by interest rates fluctuations. The
impact from possible future interest rates on the Company’s financial performance from liabilities of long
term settlement is presented below:
Interest rates fluctuation +1.00% 2016 +1.00% 2015
Grant of rights fee payable 440,745 370,005
Provision for major restoration expenses 152,288 -1.00% -1.00%
Total impact on interest expenses 593,034 (440,202) 137,710 (381,921)
507,715 (138,156)
(153,323) (520,077)
(593,525)
3.1.3 Price risk
Price risk is the risk of fluctuations in the value of assets and liabilities as a result of changes in market
prices. The Company’s exposure to equity securities price risk is limited to the investment in an unlisted
entity which represents less than 1.0% of total asset. The Company is not exposed to commodity price risk.
3.1.4 Credit risk
Credit risk arises from cash and cash equivalents held with banks, short term and long term held-to-
maturity financial assets and credit exposures from customers.
Cash and cash equivalents – Financial assets
For banks and financial institutions, only independently rated parties with minimum ratings described
below, as set out under the Master Facility Agreement between the Company and the European Investment
Bank (EIB), are acceptable. The Company could cooperate with banks or financial institutions or proceed
with the purchase of financial assets that satisfy the following criteria:
• Long term unsecured and unguaranteed debt should be rated at:
a. A3 or higher by Moody’s; or
b. A- or higher by S&P; or
c. A- or higher by Fitch
• The maturity date of an investment should not exceed the period of 2 years from the investment date
• Operates a branch in Greece or such other places as may be agreed between the Company and EIB; and
• Is acceptable by EIB
All cooperation banks are acceptable by EIB.
The analysis of financial assets and bank deposits’ balances based on credit ratings is presented in the
following table:
Held-to-maturity financial assets AAA to A- 2016 AAA to A- 2015
Available-for-sale financial assets 87,549,512 213,141,013
Bank deposits’ balances CCC to RD CCC to RD
Total 0 0 0 0
283,393,903 121,178,096
370,943,415 957,000 334,319,109 9,207,000
431,277 88,776
1,388,277
9,295,776
The above criteria are satisfied with respect to the Held-to-maturity financial assets and the Bank deposits’
balances. As regards the investment in the Available-for-sale financial asset, for which the above criteria
are not satisfied, the Company obtained the consent and waiver of EIB on 1/12/2016. Further information is
presented in Note 5.10 and Note 5.20.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
34 of 57
