MICHELIN - 2008 ANNUAL REPORT
MICHELIN - 2008 ANNUAL REPORT
MICHELIN - 2008 ANNUAL REPORT
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LOANS FROM FINANCIAL INSTITUTIONS AND OTHER<br />
Loans from financial institutions and other include mainly amounts drawn on credit lines, borrowings secured by trade receivables as mentioned in note 20 and liabilities from purchased minority shares.<br />
Loans from financial institutions and other have the characteristics mentioned in the tables below (before hedge).<br />
At 31 December <strong>2008</strong><br />
(in EUR million) EUR USD THB CNY RUB BRL Other Total<br />
Loans from financial institutions and other<br />
– of which at fixed rates<br />
– of which at variable rates<br />
993<br />
15<br />
978<br />
Weighted average effective interest rate 4.89% 3.74% 3.85% 6.66% 10.07% 16.06% 9.80% 5.31%<br />
668<br />
7<br />
661<br />
320<br />
56<br />
264<br />
184<br />
52<br />
132<br />
63<br />
–<br />
63<br />
46<br />
–<br />
46<br />
132<br />
2<br />
130<br />
2,406<br />
132<br />
2,274<br />
At 31 December 2007<br />
(in EUR million) EUR USD THB CNY RUB BRL Other Total<br />
Loans from financial institutions and other<br />
– of which at fixed rates<br />
– of which at variable rates<br />
688<br />
10<br />
678<br />
Weighted average effective interest rate 4.68% 5.69% 4.40% 5.72% 6.36% 5.37% 7.01% 5.36%<br />
294<br />
12<br />
282<br />
219<br />
65<br />
154<br />
115<br />
–<br />
115<br />
14<br />
–<br />
14<br />
1<br />
–<br />
1<br />
227<br />
14<br />
213<br />
1,558<br />
101<br />
1,457<br />
The THB variable rate loans are partially hedged through EUR 61 million interest rate swaps (2007: nil) maturing in 2013 (cash flow hedge) (note 16). The weighted average fixed rate on these swaps<br />
is 3.73%.<br />
As mentioned in notes 10 and 16, some additional interest rate derivatives in USD and THB have been contracted but do not qualify for hedge accounting.<br />
The exposure of the loans from financial institutions and other to interest rate changes and the contractual repricing dates are as follows:<br />
(in EUR million) 31 December <strong>2008</strong> 31 December 2007<br />
6 months or less<br />
6 – 12 months<br />
1 – 5 years<br />
Over 5 years<br />
2,250<br />
24<br />
91<br />
41<br />
1,437<br />
20<br />
47<br />
54<br />
2,406 1,558<br />
RATING<br />
At 31 December <strong>2008</strong>, the corporate credit ratings are as follows:<br />
CGEM<br />
CFM<br />
Short-term<br />
Standard & Poor's<br />
Moody's<br />
A-3<br />
P-2<br />
A-3<br />
P-2<br />
Long-term<br />
Standard & Poor's<br />
Moody's<br />
BBB<br />
Baa2<br />
BBB<br />
Baa2<br />
Outlook<br />
Standard & Poor's<br />
Moody's<br />
Negative<br />
Stable<br />
Negative<br />
Stable<br />
120 <strong>2008</strong> Consolidated Financial Statements of Michelin Group
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