Companhia Energetica de Minas Gerias' (CEMIG) reported steady revenue growth in 3Q 09, driven by higher revenues from electricity sold to final consumers. EBITDA declined mainly due to higher cost of purchased energy. Adjusted net income, however, increased due to lower financial charges. We believe the hike in electricity tariff rates announced in April 2009 will continue to support revenue growth going forward. We do not anticipate a change in our BUY rating for CEMIG's preferred stock. We will reassess our target price and rating in our 3Q 09 update report. We expect negative currency impact on the ADR over the medium to long term and therefore maintain the ADR rating. We will reassess our target price and rating in our 3Q 09 update report.

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