NEW YORK (Standard&Poor's) June 24, 2003--Standard&Poor's Ratings Services concludes that Calpine Corp.'s (B/Negative/--) announcement that it has reached agreement with its bank group on a term sheet for a new, two-year, $950 million secured working capital revolver is positive for the credit, but not sufficiently positive for a change in the outlook or the rating. Standard&Poor's is skeptical about the banks' willingness to extend the maturity of the revolver beyond Dec. 26, 2004, because the note holders for the $1.2 billion 2006 convertible senior notes have the right to require Calpine to repurchase the notes at par on that date. As details of the deal become public, Standard&Poor's will comment on the
