The ratings on Cleco Corp. reflect the company's excellent business risk profile and aggressive financial risk profile. Cleco Corp. owns Cleco Power LLC, a regulated electric utility, and Cleco Midstream Resources LLC, a merchant generation subsidiary. Pineville, La.-based Cleco Corp. had $1.44 billion of adjusted debt as of June 30, 2011. Cleco Power is Cleco Corp.'s largest subsidiary, serving about 279,000 customers, mainly in western and central Louisiana, a service territory with mostly below-average demographics. The company has been able to achieve constructive regulatory outcomes that generally support the consolidated credit profile. Cleco Power is currently operating under a four-year settlement agreement, entered into in October 2009, which increased base rates by $173.3 million, effective from February 2010, to account
