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. The 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 in July 2008 to incorporate the new plant into rate base. Pineville, La.-based Cleco had $1.077 billion of adjusted debt as of March 31, 2008. Cleco Power, Cleco's largest subsidiary, serves about 273,000 customers, mainly
