Companhia Energetica de Minas Gerias (CEMIG) preferred stock appreciated 21% since our 2Q 09 update report, achieving our target price on 09 December 2009. We believe this price reflects the stable financial performance of the company. CEMIG reported steady revenue growth in 3Q 09, driven by higher revenues from electricity sold to final consumers and a hike in electricity tariff rates announced in April 2009. As the target price no longer support a BUY rating from current levels, we moderate CEMIG’s preferred stock rating from a BUY to a HOLD. We will reassess our target price and rating in our 3Q 09 update report. The ADR price has appreciated significantly since our last update report. As we continue to expect a negative currency impact on the ADR over the medium to long term, we downgrade the ADR rating from a HOLD to a SELL. We will reassess our target price and rating in our 3Q 09 update report.

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