Research Update: Finnish Fortum Ratings Lowered To 'A-/A-2' On Weakening Operating Cash Flow And Credit Measures; Outlook Negative Nov 12
- Language: English
- Published: November 2012
- Region: Finland
The ratings on Finnish power utility Fortum Oyj reflect its position as one of the largest integrated utilities in the Nordic region, its diverse and competitive generation portfolio, and its stable electricity distribution and heat operations. These strengths are partly offset by the group's exposure to the competitive and increasingly challenging Nordic electricity wholesale and supply markets, volatile wholesale power prices, exposure to the higher-risk Russian market, significant capital expenditure program, and volatility in cash flows caused by currency hedging effects on internal loans denominated in Swedish krona. The ratings further reflect our methodology for rating government-related entities (GREs) and our opinion that there is a "moderate" likelihood that the Finnish government will provide timely and sufficient extraordinary support in...
Companies mentioned in this report are:
- Fortum Oyj
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included. SHOW LESS READ MORE >
- Fortum Oyj