NEW YORK (Standard&Poor's) March 25, 2002--Standard&Poor's today lowered its corporate credit rating on Calpine Corp. to double-'B' from double-'B'-plus. The outlook is stable. At the same time, Standard&Poor's lowered its rating on Calpine's senior unsecured debt to single-'B'-plus from double-'B'-plus, two notches below the corporate credit rating; its rating on the "SLOBS" (Tiverton/Rumford and Southpoint/Broad River/Rockgen) to double-'B' from double-'B'-plus; and its rating on the convertible preferred stock to single-'B' from single-'B'-plus. In addition, all of the above ratings were removed from CreditWatch, where they were placed on March 12. The actions follow Calpine's decision to secure approximately $2 billion ahead of Calpine's unsecured bondholders. "Calpine plans to pledge all of its 2.0 trillion
