Research Update: Calpine Corp. Upgraded To 'BB-' On Improved Leverage, Strong Performance; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Calpine Corp. Upgraded To 'BB-' On Improved Leverage, Strong Performance; Outlook Stable

Research Update: Calpine Corp. Upgraded To 'BB-' On Improved Leverage, Strong Performance; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Calpine Corp. Upgraded To 'BB-' On Improved Leverage, Strong Performance; Outlook Stable
Published Sep 28, 2020
11 pages (4419 words) — Published Sep 28, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

U.S.-based independent power producer (IPP) Calpine Corp.'s performance has been stronger than our previous forecasts, and it has improved its adjusted debt to EBITDA ratio to below 5.0x. S&P Global Ratings has upgraded Calpine to 'BB-' from 'B+'. We have also raised our ratings on Calpine's senior secured debt to 'BB+' from 'BB', and its senior unsecured debt to 'B+' from 'B'. The recovery ratings on the secured and unsecured debt are unchanged at '1' and '5', respectively. We have revised Calpine's financial risk assessment to FS-5 from FS-6, to reflect our expectation that adjusted leverage will be below 5.0x and sponsors would reassess capital allocations to maintain that ratio below 5.0x. The stable outlook reflects our expectation that adjusted

  
Brief Excerpt:

...- U.S.-based independent power producer (IPP) Calpine Corp.'s performance has been stronger than our previous forecasts, and it has improved its adjusted debt to EBITDA ratio to below 5.0x. - S&P Global Ratings has upgraded Calpine to '##-' from 'B+'. - We have also raised our ratings on Calpine's senior secured debt to '##+' from '##', and its senior unsecured debt to 'B+' from 'B'. The recovery ratings on the secured and unsecured debt are unchanged at '1' and '5', respectively. - We have revised Calpine's financial risk assessment to FS-5 from FS-6, to reflect our expectation that adjusted leverage will be below 5.0x and sponsors would reassess capital allocations to maintain that ratio below 5.0x. - The stable outlook reflects our expectation that adjusted debt to EBITDA will remain at about 4.75x through 2022....

  
Report Type:

Research Update

Ticker
CPN
Issuer
Calpine Corp.
GICS
Independent Power Producers & Energy Traders (55105010)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Calpine Corp. Upgraded To 'BB-' On Improved Leverage, Strong Performance; Outlook Stable" Sep 28, 2020. Alacra Store. May 25, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Calpine-Corp-Upgraded-To-BB-On-Improved-Leverage-Strong-Performance-Outlook-Stable-2522663>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Calpine Corp. Upgraded To 'BB-' On Improved Leverage, Strong Performance; Outlook Stable Sep 28, 2020. New York, NY: Alacra Store. Retrieved May 25, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Calpine-Corp-Upgraded-To-BB-On-Improved-Leverage-Strong-Performance-Outlook-Stable-2522663>
  
US$ 225.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Residential Mortgage-Backed Securities from one place.