Ability to reach generally constructive regulatory outcomes; Regulated utility operations are expected to provide virtually all of operating cash flows; Satisfactory operating performance with reduced dependence on purchased power; Merchant generation exposure is materially reduced; and Lack of competitive pressures in the service territory. Base rates are frozen for four years; Average to below-average demographic characteristics and exposure to cyclical industrial load; and Aggressive financial policies with expected modest improvement in the consolidated financial profile. The ratings on Cleco Corp. (Cleco) reflect the company's excellent business risk profile and aggressive financial risk profile. Cleco owns Cleco Power LLC, a regulated electric utility, and Cleco Midstream Resources LLC, a merchant generation subsidiary. Cleco has an excellent business risk profile that incorporates
