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23.02.12 .

In his most recent 10-K, Buffett lays out the qualities he looks for in an investment. In addition to adequate size, proven management, and a reasonable valuation, he demands:

Consistent earnings power Good returns on equity with limited or no debt Management in place Simple, non-techno-mumbo-jumbo
Source: Motley Fool 23.02.12 Has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we
Source: TheStreet.com 23.02.12

Feb 21 - The acquisition of CH Energy Group, Inc. (CHG) by Fortis Inc. is expected to have no impact on the credit ratings of Central Hudson Gas and Electric Co, (CHG&E), according to Fitch Ratings. A full list of ratings appears at the end of this release. The acquisition will be funded with all cash and consequently will have no impact on the capital structure or credit metrics of CHG or CHG&E. The transaction is valued at approximately $1.5 billion, including the assumption of approximately $500 million of debt. Post-merger, Fitch expects CHG&E's utility operations to continue to operate independently and to continue to manage to a 48% equity ratio. There is no change of control provision in CHG&E's publicly traded debt. The acquisition is subject to the approval of, among others, the New York Public Service Commission (NYPSC), the Federal Energy Regulatory Commission (FERC) and shareholders. The primary credit concern is meeting the NYPSC standard of net customer benefits, which may ultimately adversely affect revenues and credit metrics. Potential customer benefits may include rate reductions, deferral of future rate increases or other measures to offset future tariff increases. Favorably, the PSC is also likely to impose some ring fencing measures as it has done in previous acquisitions in the state. KEY RATINGS DRIVERS The ratings reflect the low business risk and predictable cash flows generated by CHG&E's regulated transmission and distribution businesses, which bear no commodity price risk. CHG&E's cash flow stability is supported by a revenue decoupling mechanism (RDM) that insulates the company from changes in sales volume due to weather, energy conservation, and customer demand. Credit quality further benefits from constructive rate recovery mechanisms that provide for deferral and future recovery of pension expense and substantial recovery of property taxes. The New York tariff structure uses forward-looking test years that better align revenue with projected operating costs. Fitch forecasts funds from operations (FFO)-to-interest of 5.0 times (x) and 4.6x in 2012, and 2013, respectively. FFO-to-debt is forecasted at 23% and 201% over the same time period. LIQUIDITY Fitch considers CHG&E's liquidity to be solid. A $150 million unsecured credit facility expires on Oct. 19, 2016. Debt maturities are manageable with $36 million due in 2012, $30 million in 2013, and $14 million in 2014. Fitch rates CHG&E as follows: --Long-term IDR 'A-'; --Short-term rating 'F1'; --Senior Unsecured Debt 'A'; --Preferred Stock 'BBB+'. Additional information is available at 'www.fitchratings.com'. Applicable Criteria and Related Research: --'Corporate Rating Methodology' (Aug. 16, 2010); --'Recovery Ratings and Notching Criteria for Utilities' (May 12, 2011); --'Short-Term Criteria for Non-Financial Corporates' (Aug.12, 2011). Applicable Criteria and Related Research: Corporate Rating Methodology Recovery Ratings and Notching Criteria for Utilities Short-Term Rating Criteria for Non-Financial Corporates We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Source: Reuters