Calpine Corp.'s 'BB+' rating and stable outlook are unaffected by the company's decision to put 34 advanced-stage projects on hold and cut its 2002 capital spending plan by as much as $2 billion. The current rating and outlook for Calpine include the assumption that the company would either issue equity in 2002 to support its construction plan, slow the construction plan, or a combination of the two. The company plans to resume its aggressive construction program once power markets and capital markets are more favorable, as evidenced by its plan to put about 15,000 megawatts of development projects on "hot standby." Therefore, the company's strategy has not changed to a degree that would warrant a change in the outlook.
