Fitch Downgrades Calpine's IDR to 'D' on Bankruptcy Filing.NEW YORK -- Fitch Ratings has downgraded Calpine Corp.'s (CPN CPN Communist Party of Nepal CPN Commercial Property News CPN Civic Practices Network CPN Calling Party Number CPN Community Psychiatric Nurse (UK) CPN Cisco Powered Network CPN Connaitre et Proteger la Nature ) issuer default rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) to 'D' from 'CC' following the company's filing of Chapter 11 bankruptcy on Dec. 20, 2005. The Negative Rating Outlook is removed. Ratings on CPN and unit Calpine Canada Energy Finance ULC ULC Up (Stage) Left Center ULC Universal Life Church ULC Underwriters' Laboratories of Canada ULC Ultra Light Client ULC Ultra Low Cost (cellular phone) ULC Urban Libraries Council (senior unsecured debt guaranteed by CPN) remain unchanged as follows: --First-priority secured notes 'B/RR1'; --Second-priority secured notes 'B-/RR1'; --Senior unsecured and convertible notes 'CC/RR5'. The debt instrument ratings and recovery ratings reflect Fitch's analysis of the ultimate recovery prospects of individual creditor classes following the bankruptcy process. The recovery analysis for CPN was published by Fitch on Dec. 1, 2005. Based on this analysis, Fitch estimates strong recovery prospects in the range of 90% to 100% of par value for the First-priority and Second-priority secured notes, and rather weak recovery prospects, in the range of 11% to 30% of par, for the senior unsecured and convertible note holders. CPN's decline has been over a protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. period of time and Fitch expects little disruption to the power markets from its demise. At the same time, with approximately 28,000 megawatts of net generating capacity in operation, CPN remains a major supplier of power in certain regions such as Texas and California, and a large counterparty to many utilities and municipal, cooperative and public power entities. Many of CPN's power sales agreements are at prices significantly below market and already California has petitioned the FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability to compel CPN to continue to supply power in accordance with the original terms. Fitch will continue to monitor the credit and market implications of CPN's bankruptcy Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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