Standard&Poor's Ratings Services lowered its corporate credit rating on Calpine Corp. to 'B' from 'BB'. In addition, Standard&Poor's lowered its rating on Calpine's secured debt to 'B' from 'BB', on Calpine's senior unsecured debt to 'CCC+' from 'B+', and on Calpine's convertible preferred securities to 'CCC' from 'B'. Also, the rating on the secured revolver and the secured term loan is lowered to 'BB-' from 'BBB-', two notches above Calpine's corporate credit rating. The two-notch elevation on the secured revolver and the secured term loan reflects a very strong likelihood of 100% recovery of principal in the event of a default or bankruptcy. The outlook remains negative. The rating downgrade is directly attributable to Calpine's deteriorating
