The ratings on Cleco Corp. (Cleco) reflect the company's excellent business risk profile and aggressive financial risk profile. Cleco owns Cleco Power LLC (Cleco Power), a regulated electric utility, and Cleco Midstream Resources LLC, a merchant generation subsidiary. Cleco's excellent business risk profile 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 reduced dependence on purchased power going forward; a four-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 Sept. 30, 2010. Cleco Power is Cleco's largest
