CAPITAL POWER CORPORATION 30. Risk management, continued: Credit risk, continued Credit quality and concentrations Cash and cash equivalents Maximum credit risk exposure Notes to the Consolidated Financial Statements (Tabular amounts in millions of Canadian dollars, except share and per share amounts) The Company’s maximum credit exposure was represented by the following financial assets: 1 The Company’s maximum credit exposures related to trade and other receivables and derivative financial instruments assets by major credit concentration are comprised of maximum exposures of $240 million (December 31, 2011 - $104 million) for generation and $191 million (December 31, 2011 - $132 million) for wholesale at December 31, 2012. This table does not take into account collateral held. As at December 31, 2012, the Company held cash deposits of $6 million (December 31, 2011 - $5 million) as security for certain counterparty trade and other receivables and derivative contracts. The Company is not permitted to sell or re-pledge this collateral in the absence of default of the counterparties providing the collateral. As at December 31, 2012, the Company also held other forms of credit enhancement in the forms of letters of credit of $53 million (December 31, 2011 - $26 million), property registrations valued at $34 million (December 31, 2011 - $24 million) and parental guarantees of $957 million (December 31, 2011 - $960 million) related to the financial assets noted above. As at December 31, 2012 and December 31, 2011, the Company also held parental guarantees which do not have a defined limit, but which provide full support on any outstanding positions related to certain development projects and counterparty performance for power purchase arrangements. The Company is exposed to credit risk on outstanding trade and other receivables associated with its generation and optimization activities including power purchase arrangements, agreements with independent system operators, power and steam sales contracts, energy supply agreements with government sponsored entities, wholesale customers, and trading counterparties. The Company is also exposed to credit risk related to its cash and cash equivalents (which include short-term investments), financial and non-financial derivative instruments assets and long-term financing arrangements. The credit quality and concentrations of the Company’s trade and other receivables and other financial assets, by major credit concentrations are the following: The Company has significant credit and performance exposures to financial institutions as they provide committed credit lines and cash deposit facilities, are the primary counterparty of the Company's foreign exchange derivative instruments, and provide letters of credit to mitigate the Company's exposure to certain counterparties. The Company manages its credit risk on cash and cash equivalents, and short-term investments by dealing with investment grade rated banks and financial institutions and reviewing each investment vehicle to ensure the underlying credit risk is known. 124 December 31, 2012 December 31, 2011 Cash and cash equivalents $ 53 $ 73 Trade and other receivables 1 354 198 Derivative financial instruments assets 1 77 38 Loans and other long-term receivables 55 38 Finance lease receivables 461 58 Loan commitments to third parties - 6 $ 1,000 $ 411