The Calpine Corp. (Calpine) corporate credit rating is 'B'. Secured debt at Calpine Corp., including the term loan, senior secured notes and the secured revolving credit facility, are rated 'B+' with a '2' recovery rating, indicating expectations for substantial recovery of principal (70%-90%) in the event of a payment default. The outlook on all ratings is stable. Calpine's pending purchase of 4,490 megawatts (MW) of gas-fired generating capacity of Connectiv Energy from Pepco Holdings Inc. for $1.65 billion is a positive both for Calpine's business and financial profiles, although it is uncertain whether the acquisition is large enough to immediately affect the Calpine' ratings. Connectiv's 2011 expected EBITDA is about 15% of Calpine's pre-transaction 2011 forecast. Pro forma for the
