96 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Barbados Public Workers’ Co-operative Credit Union Limited Notes to the Separate Financial Statements March 31, 2026 (expressed in Barbados dollars) 71 23 Financial risk management …continued Credit risk …continued Credit quality by class of financial assets Loans and advances The credit quality of the loans and advances is managed through the prudent underwriting principles established by the Credit Union. Financial investments The Credit Union has principally invested in government bonds issued by the Government of Barbados which in the 2025 financial year were rated by Standard & Poor’s as B- with a positive outlook. During the financial year ended March 31, 2026, these bonds were upgraded to rated B+ with a stable outlook. Cash resources The credit quality of financial institutions holding the Credit Union’s cash resources is assessed according to the level of their credit worthiness and by comparison to other financial institutions. The Credit Union places its cash resources with reputable financial institutions. The tables below show the credit quality analysis by class of financial assets. Credit Quality Analysis 2026 Stage 1 $ Stage 2 $ Stage 3 $ Total $ Loans and advances at amortised cost Current 873,008,322 – – 873,008,322 Overdue <30 days 115,425,851 – – 115,425,851 Overdue 31 days to 89 days – 30,583,371 – 30,583,371 Overdue over 90 days – – 157,669,942 157,669,942 Total gross loans 988,434,173 30,583,371 157,669,942 1,176,687,486
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