Annual Report 2021

ANNUAL REPORT 2021 175 37. FINANCIAL RISK MANAGEMENT (CONTINUED) 37.1 Financial risk factors (continued) (ii) Credit risk and impairment assessment (continued) The Group’s internal credit risk grading assessment comprises the following categories: Internal credit rating Description Trade debtors Financial assets other than trade debtors A The counterparty has a low risk of default and does not have any past-due amounts Lifetime ECL - not credit-impaired 12m ECL B Debtor frequently repays after due dates but usually settle in full Lifetime ECL - not credit-impaired 12m ECL C There have been significant increases in credit risk since initial recognition through information developed internally or external resources Lifetime ECL - not credit-impaired Lifetime ECL - not credit-impaired D There is evidence indicating the asset is credit-impaired Lifetime ECL - credit-impaired Lifetime ECL - credit-impaired Write-off There is evidence indicating that the debtor is in severe financial difficulty and the Group has no realistic prospect of recovery Amount is written off Amount is written off