Calpine comments on S&P downgrade

SAN JOSE, Calif., June 3, 2003 — Calpine Corp. announced its operations will not be materially impacted by Monday’s change of Standard & Poor’s (S&P) rating on Calpine’s corporate credit to B from BB.

The ratings on the company’s senior unsecured debt, convertible preferred securities, secured corporate revolver and secured term loan were also lowered.
The S&P downgrade does not trigger any defaults under the company’s credit agreements, and the company continues to conduct its business with its usual creditworthy counterparties.

“We are committed and on target to completing Calpine’s previously announced $2.3 billion liquidity program. Proceeds from this program will be used to complete our current construction plan and will allow Calpine to begin reducing debt levels later this year,” stated Bob Kelly, Chief Financial Officer for Calpine. “Calpine, while disappointed with S&P’s downgrade, remains focused on enhancing our financial strength and leadership position in the North American power industry.”

“Calpine’s 20,000-megawatt operating portfolio is the largest, cleanest and most efficient fleet of electric generating facilities in North America. The strength of our operating assets and contractual portfolio, and increasing spark spreads in certain energy markets continue to provide significant cash flow and value for Calpine.”

Calpine Corporation is a leading North American power company dedicated to providing wholesale and industrial customers with clean, efficient, natural gas-fired and geothermal power generation and a full range of energy products and services.

The company generates power at plants it owns or leases in 22 states in the United States, three provinces in Canada and in the United Kingdom. Calpine is also the world’s largest producer of renewable geothermal energy, and it owns approximately one trillion cubic feet equivalent of proved natural gas reserves in Canada and the United States. The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit


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