...NEW YORK (S&P Global Ratings) Nov. 22, 2019--S&P Global Ratings affirmed its '##' issue-level rating on Calpine Corp.'s senior secured debt and its 'B' issue-level rating on the senior unsecured debt following the company's announced $750 million distribution to its sponsors using cash on hand. The '1' (95%) and '5' (25%) recovery ratings are unchanged. At the same time, we note Calpine has announced a leverage target of 4.0x-5.0x net debt to EBITDA. The 'B+' issuer credit rating is unchanged and the outlook remains positive. Our financial ratios differ from the company's, which uses net debt in its calculations. Regardless, Calpine should generate meaningful discretionary cash between 2019 and 2021 and we expect Calpine's financial measures to be in the range for an aggressive financial risk profile assessment. This would be about 4.8x-5.0x debt to EBITDA and 14%-15% FFO to debt even after the $750 million distribution. We think the company will have to pay down incremental debt by 2022,...
