The ratings on Cleco Corp. (Cleco) reflect the company's excellent business risk profile and aggressive financial risk profile. Cleco owns Cleco Power LLC, a regulated electric utility, and Cleco Midstream Resources LLC, a merchant generation subsidiary. Cleco has an excellent business risk profile that incorporates the company's ability to reach generally constructive regulatory outcomes in Louisiana for the regulated utility operations, a significant moderation of the merchant generation exposure, satisfactory operations with expected lower dependence on purchased power going forward, a 4 year rate freeze, a service territory with modest customer growth and average to below-average demographics and exposure to cyclical industrial load. Pineville, La.-based Cleco had $1.37 billion of adjusted debt as of June 30, 2010. Cleco Power is
