The ratings on diversified energy company Cleco Corp. reflect a satisfactory business risk profile '6' (utility business profiles are categorized from '1' (excellent) to '10' (vulnerable)) and expectations of an aggressive financial profile. The business risk profile incorporates a stable though slow-growing electric utility, Cleco Power LLC (BBB/Negative/--), which supports the parent with substantial dividends, a generally supportive regulatory environment, utility operations that are disadvantaged by a relatively low proportion of owned generation, and, importantly, residual issues from unsuccessful merchant power ventures. The business risk profile also accounts for the construction of Cleco's $1 billion, 600 MW Rodemacher Unit 3 generation facility, which introduces material construction and financing risk. Cleco Power, Cleco's largest subsidiary, serves about 265,000 customers in Louisiana,
