The ratings on Cleco Corp. reflect a satisfactory business risk profile ('6'; utility business risk profiles are categorized from '1' (excellent) to '10' (vulnerable)) and expectations of an aggressive financial risk profile. Cleco's business risk profile accounts for a stable but slow-growing electric utility, Cleco Power LLC; a generally supportive regulatory environment; utility operations that are disdvantaged by a low proportion of owned generation, and importantly, residual issues from unsuccessful merchant power ventures. The business risk profile also accounts for Cleco's proposed $1 billion, 600 MW Rodemacher Unit 3 generation facility, which introduces material construction and financing risk. Cleco's aggressive financial risk profile is burdened by debt incurred to fund construction of unregulated power generation capacity. Cleco Power, Cleco's largest
