On March 13, 2006, Standard&Poor's Ratings Services affirmed its 'BBB' corporate credit rating on diversified energy company Cleco Corp. and its utility subsidiary, Cleco Power LLC. The outlook remains negative. Pineville, La.-based Cleco has about $650 million of recourse debt. The rating affirmation follows a review of the company's capital plan, after the Louisiana Public Service Commission (LPSC) approved Cleco's proposal to build a 600 MW solid-fuel plant. The LPSC's decision allows the company to collect 75% of the plant's financing cost from customers during construction, which is viewed as crucial to maintaining current ratings. The negative outlook reflects remaining serious concerns regarding construction and financing risks, as well as the scale of the project relative to Cleco's
