IBERSOL | 2019 Annual Report

Consolidated Financial Statements b) Credit risk The main activity of the Group is carried out with sales paid in cash, or debit or cre- dit card, so the Group has no significant credit risk concentrations. Regarding the customers, the risk is limited to the Catering business and sales of merchandise to franchisees representing less than 6,4% of the consolidated turnover. The Group has policies to ensure that credit sales are made to customers with an appropriate credit history. The Group has policies that limit the amount of credit that customers have access to. The Group’s cash and cash equivalents include mainly deposits resulting from cash provided by sales and its deposits in current accounts. These amounts excluded, the value of financial investments at December 31, 2019, is not significant, with the exception of the above mentioned Treasury Bonds of the Republic of Angola in the amount of 16,3 million euro, subject to country risk. Deposits and other financial investments are spread over several credit institutions; therefore there is not a concentration of these financial assets. The ratings of the major credit institutions where Ibersol group has its deposits on December 31, 2019 and 2018 are presented as follows: Year 2019 Year 2018 Agency Deposits Rating Deposits Rating Standard & Poor´s 1 176 180 A 1155092,42 A Standard & Poor´s 1 935 814 A- 4 110 213 A- Standard & Poor´s 5 123 523 BBB+ 2 799 113 BBB+ Standard & Poor´s 17 686 064 BBB 16 836 985 BBB Standard & Poor´s 5 445 547 BBB- 4 060 127 BBB- Standard & Poor´s - BB- - BB- Moody's 330 742 Baa1 - Baa1 Moody's - Baa2 - Baa2 Moody's - Baa3 - Baa3 Moody's 919 341 Ba1 802 668 Ba1 Moody's - Ba3 - Ba3 Moody's - B2 - B2 Moody's 351 749 B3 236 117 B3 Moody's 2 846 633 Caa2 2 196 864 Caa2 Not available (Angola) 1 543 131 n/a 3 545 545 n/a 236