Company: SQM
Filing Date: 2025-04-03
Form Type: 6-K
Source: 0000909037-25-000010
Chunk: 56

Company: CHEMICAL & MINING CO OF CHILE INC
Filing Date: 2025-04-03
Form: 6-K
Chunk 56
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31, 2024 (as the absolute value of the sum of their notional amounts): US$ 5.90 million in Chilean peso/dollar derivative contracts, US$ 40.35 million in euro/dollar derivative contracts, US$ 28.92 million in South African rand/dollar derivative contracts, US$ 302.65 million in Chinese renminbi/dollar derivative contracts, US$ 7.79 million in Australian dollar/dollar derivative contracts and US$ 8.00 million in other currencies.

Notes to the Consolidated Financial Statement December 31, 2024 44 These derivative contracts are held with domestic and foreign banks, which have the following credit ratings as of December 31, 2024. Financial institution Financial assets Rating Moody´s S&P Fitch MUFG Derivative P-1 - F1 Merrill Lynch International Derivative P-1 A-2 F1+ JP Morgan Derivative P-1 A-1 F1+ Morgan Stanley Derivative P-1 A-2 F1 The Bank of Nova Scotia Derivative P-1 A-1 F1+ Banco Itaú Corpbanca Derivative P-2 A-2 - Banco de Chile Derivative P-1 A-1 - Barclays Derivative P-2 A-2 F1 HSBC Derivative P-2 A-2 F1+ (c) Interest rate risk Interest rate fluctuations, primarily due to the uncertain future behavior of markets, may have a material impact on the financial results of the Company. Significant increases in the rate could make it difficult to access financing at attractive rates for the Company's investment projects. The Company maintains current and non-current financial debt at fixed rates and SOFR rate plus spread. As of December 31, 2024, approximately 7.1% of the Company's financial obligations are subject to variations in the SOFR rate. The long-term loans subject to SOFR plus a spread are held with Bank of Nova Scotia and Banco Santander/Kexim. The SOFR exposure is being hedged through derivatives. (d) Liquidity risk Liquidity risk relates to the funds needed to comply with payment obligations. The Company’s objective is to maintain financial flexibility through a comfortable balance between fund requirements and cash flows from regular business operations, bank borrowings, bonds, short-term investments and marketable securities, among others. For this purpose, the Company keeps a high liquidity ratio1, which enables it to cover current obligations with clearance. (As of December 31