NEW YORK (Standard&Poor's) June 29, 2005--Standard&Poor's Ratings Services said today that Calpine Corp.'s (B-/Negative/--) agreement to sell all of its domestic oil and gas exploration and production assets for $1.05 billion somewhat favors the company's credit quality but does not affect the rating or outlook on the company. Although the proceeds from the sale will be used to reduce outstanding debt, the gas asset sale will likely lead to greater volatility in revenues and expenses over the longer term, as Calpine may have to purchase additional gas to meet its power plants requirements. Rosetta Resources Inc., a newly formed indirect, wholly owned subsidiary of Calpine, has agreed to issue about 45.3 million of its common shares
