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Fortum Oyj Outlook Revised To Negative On Increasingly Difficult Operating Conditions; 'A/A-1' Ratings Affirmed Dec 11
Standard & Poors, December 2011
Finnish power utility Fortum Oyj's business risk profile has weakened slightly owing to increasingly difficult and volatile industry conditions, which are putting pressure on profitability and cash flows. The pressure on profitability is negatively affecting Fortum's financial risk profile, which we believe could make it difficult for the group to improve to a level commensurate with our revised financial requirements for its 'a-' stand-alone credit profile over the next 12-24 months. We are revising the outlook to negative from stable, while affirming our 'A/A-1' long- and short-term issuer credit ratings. The ratings continue to incorporate one notch of uplift to reflect our unchanged assessment that there is a "moderate" likelihood of extraordinary support from the company's 51% owner, the Finnish...
Companies mentioned in this report are: Fortum Oyj
Action: Outlook: Negative
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.
Research type: News
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