We are affirming the corporate credit ratings, all issue ratings, and the stable outlook on Calpine Corp. and its subsidiaries. Calpine's $6 billion first-lien term loan B and $1 billion first-lien revolving credit facility were also affirmed at 'B+' with a '2' recovery rating, indicating Standard&Poor's Ratings Services' expectations of substantial (70%-90%) recovery of principal in the event of a payment default even under very conservative valuations. The affirmation reflects financial performance in 2008 that was in line with our expectations and expectations for stable cash flows for 2009-2010 given that Calpine has substantially hedged its commodity exposure for these two years. Calpine has no large near-term debt maturities and no significant capital expenditure plans, either for new
