With respect to counterparty credit ratings, 65% of respondents indicated
that they specify a minimum credit rating for counterparty exposure. This
is an increase from 2009, when the result was 57%. Once again, public
companies are considerably more vigilant about the credit quality of their
dealing counterparties, with responses of 80% and 41% for public and private
entities, respectively. In 2008, when 56% of respondents said they maintained
minimum levels for counterparty credit ratings, we speculated that the strains
in the financial market that were becoming prevalent would provoke increased
vigilance with respect to minimal levels of counterparty credit ratings. Since
then, behavior, while somewhat more prevalent for providing counterparty
credit limits, has not changed dramatically. Therefore, we continue to believe
that establishing minimal levels for counterparty credit ratings remains an
area for increased attention in the corporate community.