SAN FRANCISCO (Standard&Poor's) Oct. 18, 2010-- Standard&Poor's today assigned its 'B+' rating to Calpine Corp.'s (Calpine; B/Stable/--) proposed $1 billion senior secured notes due 2021. The bonds were assigned a recovery rating of '2', indicating our expectation for substantial (70%-90%) recovery of principal in the event of a payment default. At this recovery level, issue ratings are one notch above an issuer's corporate credit rating. The size of the issue maybe increased in response to market demand. " Merchant market conditions remain weak, and Calpine's financial profile is on the weaker side of expectations for the rating," said credit analyst Swami Venkataraman. "However," he noted, "Calpine is immune to the dark spread compression witnessed in recent
