Notes to the Consolidated Financial Statements
d. Credit risk Credit risk is the risk of financial loss if a customer or counterparty to a financial or derivative instrument fails to meet its contractual obligations. The Corporation is exposed to credit risk through cash and cash equivalents, trade and other receivables, debt retirement funds and derivative instrument assets. Credit risk related to cash and cash equivalents and debt retirement funds is minimized by dealing with institutions that have strong credit ratings and holding highly rated financial securities. The Corporation extends credit to its customers in the normal course of business and is at risk of loss in the event of non-performance by counterparties on certain of the financial and derivative instruments. To reduce its credit risk, the Corporation has established policies and procedures to monitor and limit the amount of credit extended to its customers and counterparties and may require letters of credit and other forms of security. As at March 31, 2024, the maximum credit exposure to a single counterparty is a carrying amount of $12 million (2023 - $10 million). The carrying amount of financial and derivative assets represents the maximum credit exposure as follows: (millions) 2024 2023 Cash and cash equivalents $ 20 $ 6 Trade and other receivables 185 248 Debt retirement funds 179 160 Fair value of derivative instrument assets 11 55 $ 395 $ 469 At March 31, 2024, the exposure to credit risk for trade receivables by type of customer was as follows: (millions) 2024 2023 Distribution customers $ 112 $ 180 Transmission and storage customers 40 28 Asset optimization customers 2 3 Other customers 31 37 Trade and other receivables $ 185 $ 248
10. Assets Held For Sale As at March 31, 2024, there were no assets classified as held for sale (2023 - $1 million).
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