NEW YORK (Standard&Poor's) Jan. 29, 2004--Standard&Poor's Ratings Services said today that the agreement between Cleco Corp. (BBB/Negative/A-3) and Entergy Corp. (BBB/Stable/--) for the sale of Cleco's Perryville power plant to Entergy is positive for Cleco's credit quality, but will not have an immediate effect on the company's ratings. The bankruptcy filing of Perryville's direct owners, Perryville Energy Partners and Perryville Holdings LLC, is also viewed positively, as it backs up Cleco's stated intent to not offer further corporate support to the project. The transaction, which includes a power sales agreement from the plant to Entergy while the plant sale is pending, removes some residual uncertainty about the effect of Perryville on Cleco's credit profile. Further clarity
