NEW YORK (Standard&Poor's) July 6, 2004--Standard&Poor's Ratings Services said that today's announcement of a preliminary settlement in Cleco Corp. subsidiary Cleco Power LLC's (BBB/Negative/A-3) fuel audit proceeding will not immediately affect the company's ratings. The agreement with the staff of the Louisiana Public Service Commission and other intervenors appears to provide a reasonable resolution to difficult issues stemming from affiliate transactions with the trading arm of parent Cleco Corp. (BBB/Negative/A-3); these activities led, in part, to a rating downgrade in 2002. The possibility of regulatory consequences to the trading improprieties has already been factored into the ratings of Cleco Corp. and Cleco Power.
