Balance sheet exposure

Balance sheet exposure

Accounting Exposure

The risk that a company may suffer a reduction in value because a change in exchange rates reduces the value of its accounts or assets denominated in foreign currencies. That is, if a particular currency in which a company has some assets denominated decreases in value, the value of those assets also decreases with respect to the company's main currency. See also: Foreign exchange risk.
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Although Moody's notes that rated Kenyan banks' credit profiles are underpinned by strong capital and profitability metrics as well as solid deposit-based funding profiles, the rating agency views the sovereign credit profile as a key factor driving banks' creditworthiness given their elevated balance sheet exposure to the sovereign.
End of day valuations produced by FINCAD will be leveraged for internal reporting, managing balance sheet exposure, and producing external reports required for European Central Bank and Basel III reporting.
Although the bank's balance sheet exposure to Greece is modest at around 15.1 per cent of equity, a Greek exit from the euro would likely lead to market disruptions and negatively affect confidence in Cyprus, affecting the bank's funding and asset quality.
He added that for most credit unions, the balance sheet exposure to corporate perpetual capital is quite small relative to total assets, so the set-aside is large on a marginal basis but small relative to the entire portfolio.
Before a balance sheet exposure can be hedged, it must be forecast.
Citi said that the platform is ideal for multinational corporations as they can track cash flow and balance sheet exposure across subsidiaries, ensuring better transparency of any hedging programme.
Previously available balance sheet exposure management capabilities are now offered as TransactionFX.
Given the potential severity of AD&D exposures, any carrier underwriting this line must be strong financially and actively manage its balance sheet exposure, including accumulation exposure management, to sustain its long-term strength.
Fitch estimates WCN likely has the highest proportion of outstanding balance sheet exposure to the E&P sector.
Despite these material improvements that contributed to the change in the rating outlook to stable, the Ba2 deposit rating also continues to reflect the limited global scale of Investcorp's operations and risks inherent in the company's business model, including fairly high, albeit declining, balance sheet exposure to private equity investments (with corporate and real estate investments accounting for around 140% of Moody's adjusted tangible common equity as at June 2013) and the company's still volatile earnings profile.
The central bank recently granted a five-year time frame to UAE banks to reduce their excess balance sheet exposure to government related entities (GREs).
The carrier must be financially strong and actively manage its own balance sheet exposure, particularly accumulation exposure, to sustain its strength long term.