The corporate credit rating on Cleco Corp. is determined by using a consolidated credit assessment methodology, and thus incorporates the operating and financial strength of the company's primary subsidiary, Cleco Power LLC (formerly Cleco Utility Group Inc.). Furthermore, the ratings on Cleco Corp. are constrained by the financing requirements of Cleco's nonregulated activities, which have a higher business risk than that of the regulated utility. The ratings for Cleco reflect the nonregulated business' generation of cash flows and risk-management efforts associated with power development projects. These factors have begun to offset the pressure that was placed on credit protection measures in the recent past. Cleco Power, a relatively low-cost, midsize regulated electric utility serving parts of Louisiana, provides stable cash
