8	FINANCIAL INSTRUMENTS

8.1

Financial instruments by category

At December 31 the classification of financial assets and liabilities by category is as follows:


	At December, 31
	2016		2017
Assets according to the statement of financial position
Loans and accounts receivable:
- Cash and cash equivalents		600,923		626,180
- Trade accounts receivable and other accounts receivable not including advances to suppliers, net		1,329,262		1,447,629
- Work in progress		878,515		672,163
- Financial assets related to concession agreements		685,975		952,780
- Accounts receivable from related parties		713,048		874,682

		4,207,723		4,573,434

Financial asset at fair value through profit or loss
- Cash and cash equivalents (Mutual funds)		6,027		—
- Other financial asset		352		181

		6,379		181

Financial assets related to concession agreements are recorded in the consolidated statement of financial position within the line items of short-term trade accounts receivable and long-term trade accounts receivable.


	At December, 31
	2016		2017
Financial liabilities according to the statement of financial position
Other financial liabilities at amortized cost
- Other financial liabilities		2,140,297		1,561,754
- Finance leases		240,141		128,309
- Bonds		967,714		947,567
- Trade and other accounts payable (excluding non-financial liabilities)		1,769,444		2,054,217
- Accounts payable to related parties		145,537		81,128

		5,263,133		4,772,975

Hedging derivatives:
- Derivative financial instruments
		1,081		383

8.2

Credit quality of financial assets

The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external risk ratings (if available) or to historical information about counterparty default rates.

At December 31 the credit quality of financial assets is shown as follows:


	At December 31,
	2016		2017
*Cash and cash equivalents ()**
Banco de Crédito del Perú (A+)		147,759		224,834
Banco Continental (A+)		136,805		100,882
Banco Scotiabank (A+)		121,480		71,608
Citibank (A)		105,812		110,846
Banco de la Nación (A)		30,007		17,776
Banco Santander - Perú (A)		17,480		—
Banco Interbank (A)		6,344		14,937
Banco de Chile (AAA)		4,822		4,337
Banco Interamericano de Finanzas (A)		4,035		5,551
Banco Bogotá (A)		3,756		25,609
Larrain Vial de Chile (A)		3,514		—
Banco GNB (A)		2,080		1,334
Banco Santander - Chile (AAA)		1,941		22,041
Scotiabank Chile (AAA)		1,117		3
Banco de Crédito e Inversiones - Chile (AA+)		937		1,105
Banco Scotiabank de Guyana (A)		125		116
Others		5,061		5,935

		593,075		606,914

The ratings in the above table “A and AAA” represent high quality credit ratings. For banks located in Peru, the ratings were derived from risk rating agencies authorized by the Peruvian banking and insurance regulator “Superintendencia de Banca, Seguros y AFP” (SBS). For banks located in Chile, the ratings were derived from risk rating agencies authorized by the Chilean stock and insurance regulator “Superintendencia de Valores y Seguros” (SVS).

(*)	The difference between the balances shown above with the balances shown in the statement of financial position corresponds to cash on hand and in-transit remittances (Note 9).

The credit quality of customers is assessed in three categories (internal classification):

New customers/related parties (less than 6 months),

existing customers/related parties (with more than 6 months of trade relationship) with no previous default history; and

existing customers/related parties (with more than 6 months of trade relationship) with previous default history.


	2016		2017
Trade accounts receivable (Note 11 and Note 12)
Counterparties with no external risk rating
A		117,797		6,042
B		2,052,356		2,313,187
C		407,151		194,248

		2,577,304		2,513,477

Receivable from related parties (Note 13)
B		713,048		874,682

The total balance of trade accounts receivable and receivable from related parties is in compliance with contract terms and conditions; none of them have been re-negotiated.