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December 4, 2007 |
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COMPANHIA ENERGETICA: Gets Outperform Rating from Credit Suisse Credit Suisse analysts have reinitiated coverage of Companhia Energetica de Minas Gerais, assigning an "outperform" rating on its shares, Newratings.com reports. Newratings.com relates that Credit Suisse set the target price for Companhia Energetica's shares at US$28. The analysts said in a research note that Companhia Energetica's stock is "trading at a discount to the sector." According to Newratings.com, the analysts said Companhia Energetica "has among the highest exposure in the sector to the trend of rising energy prices in Brazil." The firm's generation unit would have 10% EBITDA growth in 2006-2012. Companhia Energetica would generate higher-than-sector-average cash flow yields of 12.4% in 2008 and of 10.9% in 2009, Newratings.com states, citing Credit Suisse. Companhia Energetica de Minas Gerais -- http://www.cemig.com.br/ -- is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market. Cemig's concession area extends throughout nearly 96.7% of the State of Minas Gerais, Brazil. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). * * * As reported on March 8, 2007, Moody's Investors Service assigned corporate family ratings of Ba2 on its global scale and Aa3.br on its Brazilian national scale to Companhia Energetica de Minas Gerais aka CEMIG. The rating action triggered the upgrade of CEMIG's outstanding debentures due in 2009 and 2011, and of the BRL250 million 2014 senior unsecured guaranteed debentures of its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from B1 on the global scale and to Aa3.br from Baa2.br on the Brazilian national scale, concluding the review process initiated on Aug. 8, 2006. |
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