VILLAGE OF GRAFTON NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) A. DEPOSITS AND INVESTMENTS (cont.) Custodial Credit Risk (cont.) Investments (cont.) As of December 31, 2016, the village's investments were exposed to custodial credit risk as follows: US Treasuries Neither insured nor registered and held by counterparty $ 1,994,624 US Agencies Neither insured nor registered and held by counterparty $ 2,715,636 Neither insured nor registered and held by counterparty's trust department or agent not in the village's name 31,811 Total US Agencies $ 2,747,447 Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The village held investments in US agencies which was rated by Moody's/Standard & Poor's at Aaa/AA+. The village held investments in the following external pool which is not rated: LGIP Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. 62