Calpine Corp.'s corporate credit rating is 'B', assigned at the time of the company's emergence from bankruptcy protection on Jan. 31, 2008. The $6 billion first-lien term loan B and $1 billion first-lien revolving credit facility are rated 'B+' with a '2' recovery rating, indicating Standard&Poor's Ratings Services' expectations of substantial recovery of principal (70%-90%) in the event of a payment default. The rating incorporates the following weaknesses: Significant exposure to volatile merchant cash flows; Uncertain merchant outlook due to economic conditions; Primary role as a merchant generator, with hedges being mostly short term; Significant leverage at about $436/kW; and An upcoming $366 million maturity at subsidiary Calpine Construction Finance Co. (CCFC) in Q3 2009 These weaknesses are
