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Calpine regains ground after S&P retracts warning

Feb. 26, 2002 — Calpine stock improved Tuesday after the ratings agency Standard & Poor’s retracted a warning.

S&P had issued the warning that it might lower the California-based energy company’s corporate credit rating of double ‘B’ plus because of Calpine’s announced plans to secure additional financing, CBS MarketWatch reported.

But no such financing has occurred, so S&P retracted its warning and Calpine stock bounced up 14.2 percent to $7.80 per share in the New York Stock Exchange (NYSE).

The energy company had taken a hit in the NYSE on Monday after the California Public Utilities Commission (PUC) asked FERC to revoke long-term power contracts the state had made with several major power providers including Calpine.

Calpine has said it is finalizing discussions with lenders for a new secured credit facility to build a strong liquidity position in 2002.