The ratings on diversified energy company Cleco Corp. reflect a satisfactory business profile and an aggressive financial profile. The business profile incorporates a stable though slow-growing electric utility, Cleco Power LLC (BBB/Stable/--), residual issues from unsuccessful merchant power ventures, an average regulatory environment for the utility, and utility operations that are hampered by a low proportion of owned generation. Cleco's aggressive financial profile is burdened by debt incurred to fund construction of unregulated power generation capacity. In September, Standard&Poor's affirmed its ratings on Cleco following a review of the company in which the effect of the damage caused by Hurricanes Katrina and Rita on the company was assessed. The outlook remains negative, reflecting serious concerns regarding Cleco's plans
