The ratings on power generation company Calpine Corp. remain at 'D' because the company filed for bankruptcy in December 2005. The recovery rating on Calpine's first-lien debt is '1'. The recovery rating on Calpine's second-lien debt is '4'. The recovery ratings remain on CreditWatch with negative implications where they were placed Dec. 21, 2005. The '1' recovery rating indicates the high expectation of full recovery of principal. The '4' recovery rating indicates the expectation of marginal (25%-50%) recovery of principal. The recovery ratings reflect Calpine's recently closed $2 billion debtor in possession financing, which materially subordinates both the Calpine first and second lien debt.
