Notes to the
consolidated
financial statements
continued
30 Financial risk management and financial instruments continued
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Contractual cash flows
Total
(75)
(210)
(18)
(69)
(2o2)
(289)
Year ended January 3, 2016
Credit ratings
Maintaining investment grade credit ratings is a cornerstone of Ahold Delhaize’s strategy because such ratings serve to lower the cost of funds and
facilitate access to a variety of lenders and markets. Ahold Delhaize’s current credit ratings from the solicited rating agencies are as follows:
Capital risk management
The Company’s primary objective in terms of managing capital is the optimization of its debt and equity balances in order to sustain the future
development of the business, maintain a solid investment grade credit rating and maximize shareholder value.
Derivative financial liabilities
Cross-currency swaps and foreign currency derivatives
Standard Poor’s: corporate credit rating BBB, with a stable outlook as of June 2009 (previous rating BBB- assigned in 2007).
Moody’s: issuer credit rating Baa2 as of August 2015 (previous rating Baa3 assigned in 2007). The outlook was revised from stable to positive in
August 2016.
Net carrying
amount
Within
1 year
Between
1 and 5
years
After
5 years
(22)
(56)
(52)
(1)
(209)
(22)
(2,800)
(52)
(78)
(16)
(565)
(2)
(194)
(4)
(790)
(66)
(128)
(7)
(1,119)
(2)
(217)
(7)
(1,110)
(18)
(1,759)
(4)
(463)
(12)
(2,109)
(106)
(2,800)
(52)
(228)
(79)
(1,144)
(3)
(397)
(9)
(1,400)
(497)
(2,800)
(52)
(221)
(61)
million
Non-derivative financial liabilities
Notes
Other loans
Financing obligations
Mortgages payable
Finance lease liabilities
Cumulative preferred financing shares1
Accounts payable
Short-term borrowings
Reinsurance liabilities
Other
1 Cumulative preferred financing shares have no maturity. For the purpose of the table above, the future dividend cash flows were calculated until the coupon reset date of each of the four
share-series (2016, 2018, 2020 and 2023). No liability redemption was assumed.
