Standard&Poor's assigned its 'BBB-' rating to Calpine Corp.'s new $1.0 billion senior secured Term B bank loan and new $1.0 billion senior secured revolving credit facility. Standard&Poor's emphasizes that the default risk of the new credit facilities is decidedly 'BB', the same as Standard&Poor's corporate credit rating on Calpine; the two-notch elevation to 'BBB-' 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. Unsecured senior lenders and owners of preferred stock would be contractually subordinated to senior lenders' claims. In order to secure
