We assigned our 'B+' rating to Calpine Corp.'s proposed $750 million senior secured notes due 2020, which maybe upsized by as much as $1.1 billion. The proceeds will be used to refinance a portion of Calpine's bankruptcy emergence term loan. We also assigned the notes a recovery rating of '2', indicating our expectation for substantial (70%-90%) recovery of principal in the event of a payment default. At this level, issue ratings are one notch above the Calpine 'B' corporate credit rating. The stable outlook reflects our expectations for continued strong operations in Calpine's power plants, the hedged nature of Calpine's fleet for 2010 and 2011, and the absence of any major new investment program. On July 19, 2010, Standard&
