NEW YORK (Standard&Poor's) May 21, 2002--Standard&Poor's assigned its triple-'B'-minus rating to Calpine Corp.'s (corporate credit rating, double-'B'/Stable/--) new $1.0 billion senior secured Term B bank loan and new $1.0 billion senior secured revolving credit facility. The outlook on both facilities is stable. Standard&Poor's emphasizes that the default risk of the new credit facilities is decidedly double-'B', the same as Standard&Poor's corporate credit rating on Calpine; the two-notch elevation to triple-'B'-minus reflects the strong prospects for recovery in a default or stress scenario. "In an insolvency scenario, the secured creditors who are providing the two credit facilities would likely benefit from their senior claim over the collateral that Calpine has pledged," said credit
