S&P: Calpine Construction unaffected

Standard & Poor's said that Calpine Construction Finance Co. LP's (B-/negative/--) sale of its 560 megawatt Ontelaunee Energy Center for about $225 million will not affect the ratings or outlook on the company or its debt.

The company was required to offer the proceeds from the sale to repay debt, S&P said; however, both the first-lien and second-lien debt holders declined repayment.

Although the sale somewhat reduces the debt collateral, the reduction is insufficient to warrant a change in either debt rating, S&P said.

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