CAPITAL POWER CORPORATION 30. Risk management, continued: Credit risk, continued Liquidity risk Notes to the Consolidated Financial Statements (Tabular amounts in millions of Canadian dollars, except share and per share amounts) Trade and other receivables and allowance for doubtful accounts, continued The aging of trade and other receivables was: 1 Current amounts represent trade and other receivables outstanding zero to 30 days. Amounts outstanding more than 30 days are considered past due. The changes in the allowance for doubtful accounts were as follows: Bad debt expenses (net of recoveries) of $1 million and nil were recognized in the years ended December 31, 2012 and 2011 respectively. As at December 31, 2012, the Company held $6 million of customer deposits for the purpose of mitigating the credit risk associated with accounts receivable from customers. As at December 31, 2012, there was no provision for credit losses associated with trade and other receivables from treasury, trading and energy procurement counterparties as all balances are considered to be fully collectible. Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s liquidity is managed centrally by the Treasury function. The Company manages liquidity risk through regular monitoring of cash and currency requirements by preparing short-term and long-term cash flow forecasts and also by matching the maturity profiles of financial assets and liabilities to identify financing requirements. The financing requirements are addressed through a combination of committed and demand revolving credit facilities, financings in public and private capital debt markets and equity offerings by the Company or its CPLP subsidiary. CPC has a long-term debt rating of BBB- (Outlook Stable), assigned by Standard & Poor’s (S&P) and a preferred share rating of P-3 and Pfd-3(low) assigned by S&P and DBRS Limited (DBRS) respectively. CPLP has long-term debt ratings of BBB- (Outlook Stable) and BBB/stable outlook, assigned by S&P and DBRS respectively. As at December 31, 2012, the Company had undrawn bank credit facilities and operating lines of credit and demand facilities, totaling $884 million (December 31, 2011 - $873 million), of which $859 million is committed for at least four years (December 31, 2011 - $848 million committed for at least three years). 126 2012 2011 As at January 1 $ 1 $ 1 Amounts reversed unused (1) - New allowance 2 - As at December 31 $ 2 $ 1 Gross trade and other receivables Allowance for doubtful accounts Net trade and other receivables Current 1 $ 322 $ - $ 322 Outstanding 30 - 60 days 24 - 24 Outstanding greater than 90 days 10 2 8 $ 356 $ 2 $ 354