S&P: Calpine unaffected

Standard & Poor's said Calpine Corp.'s (B/negative/--) announcement that it will restate its financials for third-quarter 2004 and delay its 2004 reports pending finalization of the restatement process is a credit concern, but does not immediately affect the company's ratings.

While the restatement could ultimately be determined to be significant, based on currently disclosed information, S&P said it is unlikely to affect Calpine's ratings, assuming that further delays do not trigger noncompliance with covenants.

In addition to the restatement, Calpine disclosed that it did not maintain effective controls over financial reporting and its expectation is that its external auditors will issue an adverse opinion on the internal control environment as of Dec. 31.

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