Boston, MA 05/07/2014 (wallstreetpr) – Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) has witnessed an increase in credit rating. Rating agency, Standard & Poor’s, has increased the credit rating of CIG to BB+ from BB in the global scale while increase is to brAA+ from brAA- in national scale. Stable outlook has been maintained for both scales.
Key developments
The company decided to earmark 1,655,602,000 Brazilian reais from the net profit of last year as dividends.
Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) has given the go ahead to distribution of its own capital interest to the tune of 533,149,000 Brazilian reais. This translates to 0.55 Brazilian reai a share.
The net income of the company dropped by 27.3% last year when compared to 2012 in spite of decreased operating expenses and increased cash flow from greater revenues.
Corporate alliances
The company’s fully owned subsidiary, Cemig Geracaoe Transmissao SA, has entered into an agreement with Equipamentos and Arcadis for acquiring 49.9% stake in Retiro Baixo Energetica SA (RBE). RBE has an exploration concession of Retiro Baixo Hydropower Plant in Brazil. This plant is situated at Paraopeba river and has an installed capacity of 83.7 megawatt. The deal has been concluded for a consideration of 145,896,792.41 Brazilian reais.
The company, along withEmpresas Publicas de Medellin (EPM), has formed a consortium so that it can stake claims in the sale of Isagen SA, a Columbian power generator. The EPM comprises a total of 58 corporates. Out of these, 20 are Columbian while the remaining 38 are from Spain, Mexico, United States, Chile and Central America.
Companhia Energetica Minas Gerais (ADR) (NYSE:CIG) has formed a joint venture with another power giant, Vale SA, after signing corporate and commercial documents. Vale SA would have a majority 55% stake in the new company while 45% stake will be held by Cemig. The JV involves stakes of both these companies in 6 hydro electric power plants having a total combined capacity of 1,158 MW.
Cemig has acquired roughly 50% of the 9% stake that Vale SA has in Norte Energia SA.
