Stock Upgrades, Downgrades From TheStreet.com Ratings

Each weekday, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Apparel retailer Limited Brands(LTD Quote) has been downgraded to hold. While the company has seen revenue growth, reasonable valuation levels and expanding profit margins, it has also struggled with deteriorating net income, generally poor debt management and disappointing return on equity. On Wednesday, Limited Brands, which operates Victoria's Secret and Bath & Body Works, said second-quarter earnings more than doubled, totaling $264.4 million, or 67 cents a share, compared with $113.1 million, or 28 cents a share, a year ago. Sales increased to $2.6 billion from $2.5 billion a year ago. The company recently sold off majority interests in its Limited Stores chain and Express brand. Limited Brands had been rated buy since February 2006.