The ratings on diversified energy company Cleco Corp. reflect the company's strong business risk profile and incorporate expectations of an aggressive financial risk profile over the intermediate term. 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 successful inclusion of the unit into base rates. Pineville, La.-based Cleco had $1.0 billion of adjusted debt as of Sept. 30, 2008. Cleco Power, Cleco's largest subsidiary, serves about 273,000 customers, mainly in western and central Louisiana,
