Fitch: CH Energy Group's Partial Sale of Griffith A Credit Positive

The divestiture is anticipated to be completed in December 2009 and Fitch expects that the proceeds will be used for general corporate purposes and to fund continued business development opportunities. Fitch views the partial divestiture of Griffith as a credit positive to CHG&E (Issuer Default Rating [IDR] 'A-' with a Stable Outlook by Fitch) and believes that the regulated utility could ultimately benefit from the decreased business risk and reduced cash flow volatility of its parent company; however, no changes to CHG&E's IDR and issue ratings are expected as a result of the divestiture.

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