STOCKHOLM (Standard&Poor's) May 19, 2004--Standard&Poor's Ratings Services said today its ratings on Fortum Oyj (BBB+/Stable/A-2) are unaffected by the cancellation of the acquisition of Norwegian utility Hafslund ASA. The cancellation means that the expected financial weakening resulting from the approximately €2.1 billion in additional debt incurred from the transaction will now not occur. Such a financial weakening was, however, already factored into the rating. Standard&Poor's expects that Fortum will now use the financial headroom for other investments in line with its strategy to expand its Nordic utility operations. The impact on business risk from the cancellation is marginally negative. ANALYST E-MAIL ADDRESSES andreas_zsiga@standardandpoors.com per_karlsson@standardandpoors.com infrastructureeurope@standardandpoors.com
