Cleco Corporate Holdings LLC And Cleco Power LLC Outlooks Revised To Stable On Approval Of Securitization Of Storm Costs

On April 1, 2022, the Louisiana Public Service Commission (LPSC) authorized the securitization financing of Cleco Power LLC's (Cleco Power) $424 million storm restoration costs. With the expected securitization proceeds, we expect Cleco Corporate Holding LLC's (Cleco Corp.) funds from operations (FFO) to debt to be in the range of 14%-15%, above our downside trigger of 13%. Cleco Power is a regulated utility subsidiary of Cleco Corp. We revised our rating outlooks on Cleco Corp. and its subsidiary Cleco Power to stable from negative. At the same time, we affirmed our 'BBB-' issuer credit rating on Cleco Corp. and our 'BBB+' issuer credit rating on Cleco Power. The stable outlook reflects our expectation of improving financial measures and a stronger

...April 4, 2022 - On April 1, 2022, the Louisiana Public Service Commission (LPSC) authorized the securitization financing of Cleco Power LLC's (Cleco Power) $424 million storm restoration costs. With the expected securitization proceeds, we expect Cleco Corporate Holding LLC's (Cleco Corp.) funds from operations (FFO) to debt to be in the range of 14%-15%, above our downside trigger of 13%. Cleco Power is a regulated utility subsidiary of Cleco Corp. - We revised our rating outlooks on Cleco Corp. and its subsidiary Cleco Power to stable from negative. - At the same time, we affirmed our '###-' issuer credit rating on Cleco Corp. and our '###+' issuer credit rating on Cleco Power. - The stable outlook reflects our expectation of improving financial measures and a stronger balance sheet given storm restoration costs securitization. TORONTO (S&P Global Ratings) April 4, 2022--S&P Global Ratings today took the rating actions listed above. The outlooks on Cleco Corp. and Cleco Power reflect...

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