NEW YORK (Standard&Poor's) May 31, 2005--Standard&Poor's Ratings Services said today that it views Calpine Corp.'s (B/Negative/--) announced sale of its Saltend plant as favorable for the company's credit quality. However, the sale is in line with expectations and does not affect the rating or outlook on the company. Calpine has agreed to sell its 1,200 MW Saltend Energy Centre for about $925 million. Net proceeds from the sale will be used to redeem two existing series of redeemable preferred shares for approximately $620 million, as permitted by Calpine's existing bond indentures. Calpine is selling the Saltend power plant to a partnership between International Power plc and Mitsui&Co. Ltd. Calpine expects the sale to close
