Standard&Poor's today assigned its 'B+' rating to Calpine Corp.'s $1 billion senior secured revolving credit facility. The company is in the process of putting in place a revolving credit facility under a separate set of covenants from that of the existing revolver, which matures in December 2014 and has the same set of covenants as Calpine's bankruptcy exit term loan. This is part of Calpine's refinancing efforts to eventually eliminate the bankruptcy covenant package. There are no material changes to covenants from a credit perspective. The facility's recovery rating of '2' is also affirmed, indicating our expectation for substantial (70% to 90%) recovery of principal in the event of a payment default. At this level, issue ratings are
