|
Minnesota Municipal Power Agency
<br />Notes to Financial Statements
<br />December 31, 2022 and 2021
<br />Note 2: Cash, Cash Equivalents, and Investments - Continued
<br />Credit Risk
<br />Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
<br />Credit risk is measured using credit quality ratings of investments in debt securities as described by
<br />nationally recognized rating agencies such as Standard & Poor's and Moody's. The certificates of deposit
<br />are FDIC insured. The money market accounts are invested in short-term U.S. government securities
<br />and commercial paper.
<br />The following tables list the credit quality ratings per Standard & Poor's and/or Moody's of the Agency's
<br />investments as of December 31, 2022 and 2021:
<br />December 31, 2022
<br />Quality ratings
<br />Carrying
<br />Value AA AAA Unrated
<br />Investment type
<br />U.S. government agencies $ 8,054,874 $ 8,054,874-
<br />Money market accounts 90,705,089 - 6,164,900 84,540,189
<br />Total $ 98,759,963 $ 8,054,874 $ 6,164,900 $ 84,540,189
<br />December 31, 2021
<br />Quality ratings
<br />Carrying
<br />Value AA AAA Unrated
<br />Investment type
<br />U-S_ government agencies $ 10,791,362 $ 10,791,362 $ - $ -
<br />Money market accounts 73,269,678 - 4,217,002 69,052,676
<br />Total $ 84,061,040 $ 10,791,362 $ 4,217,002 $ 69,052,676
<br />Custodial Credit Risk
<br />Custodial credit risk is the risk that, in the event of the failure of a counterparty, the Agency will not be
<br />able to recover the value of the investments, collateral securities, or deposits that are in the possession of
<br />the counterparty. The Agency's investment policy addresses, among other things, custodial credit risk.
<br />At December 31, 2022 and 2021, all of the Agency's investments are insured and registered and are held
<br />by the counterparty's trust department or agent in the Agency's name.
<br />21
<br />159
<br />
|