The ratings on diversified energy company Cleco Corp. reflect the company's strong business risk profile and expectations of an aggressive financial risk profile. Cleco owns Cleco Power LLC, a regulated electric utility and Cleco Midstream Resources LLC, a merchant energy subsidiary. Ratings reflect Cleco's generally constructive regulatory environment, a service territory with modest customer growth and average to below-average demographics, satisfactory operations, the construction risk relating to the Rodemacher Unit 3 600 megawatt (MW) plant, and the company's plans to file a rate case at the end of 2008 to incorporate the new plant into rate base. Pineville, La.-based Cleco had $873 million of adjusted debt as of Sept. 30, 2007. Cleco Power, Cleco's largest subsidiary, serves about 265,000 customers,
