Moody's lifts Cleco Evangeline notes

Moody's Investors Service said it upgraded to Ba1 from Ba2 the rating of Cleco Evangeline, LLC's 8.82% senior secured notes due 2019, stating that the action concludes the review for possible upgrade that was initiated on May 22.

The outlook is stable.

Moody's said that the upgrade reflects substantial improvement in counterparty credit quality at Evangeline following Williams Cos., Inc.'s (Ba2 senior unsecured; under review for upgrade) assignment of its tolling agreement with Evangeline to Bear Energy LP (Bear Energy), a subsidiary of Bear Stearns Co.

However, the agency said that the upgrade factors in Evangeline's sizeable increase in major maintenance costs in 2006 due to higher dispatch levels by the tolling counterparty.

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