|NRG ENERGY, INC. filed this Form 10-K on 03/01/2018|
Liquidity and Capital Resources
As of December 31, 2017 and 2016, NRG's liquidity, excluding collateral funds deposited by counterparties, was approximately $3.2 billion and $2.4 billion, respectively, comprised of the following:
For the year ended December 31, 2017, total liquidity, excluding collateral funds deposited by counterparties, increased by $837 million. Changes in cash and cash equivalent balances are further discussed hereinafter under the heading Cash Flow Discussion. Cash and cash equivalents at December 31, 2017, were predominantly held in money market funds invested in treasury securities, treasury repurchase agreements or government agency debt.
Management believes that the Company's liquidity position and cash flows from operations will be adequate to finance operating and maintenance capital expenditures, to fund dividends to NRG's common stockholders, and to fund other liquidity commitments. Management continues to regularly monitor the Company's ability to finance the needs of its operating, financing and investing activity within the dictates of prudent balance sheet management.
On July 12, 2017, NRG announced its Transformation Plan, which is described further in Item 1 — Business.
On October 6, 2017, Moody's upgraded the NRG rating outlook to positive from stable and affirmed NRG's Ba3 Corporate Family Rating.
The following table summarizes the Company's current credit ratings: