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Bulletin: Fortum Ratings Unaffected By Announced Disposal Of Finnish Electricity Distribution Business

Published Dec 12, 2013

955 words — Published Dec 12, 2013

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Abstract:

STOCKHOLM (Standard&Poor's) Dec. 12, 2013--Standard&Poor's Ratings Services said today that its ratings and outlook on Finnish power company Fortum Oyj (A-/Negative/A-2; Nordic regional scale K-1) remain unchanged following Fortum's announcement that it has agreed to sell its Finnish electricity distribution business. We understand that the sale price is €2.55 billion on a debt- and cash-free basis. The company has stated that the goal is to strengthen its balance sheet and prepare for future growth, without specifying the intended use of proceeds. In our view, the disposal of the Finnish electricity distribution business does not have a material impact on Fortum's credit quality, as the loss of stable cash flows (EBITDA of about €150 million) is likely

Brief Excerpt:

RESEARCH Bulletin: Fortum Ratings Unaffected By Announced Disposal Of Finnish Electricity Distribution Business Publication date: 12-Dec-2013 Primary Credit Analyst: Alf Stenqvist, Stockholm (46) 8-440-5925; alf.stenqvist@standardandpoors.com...

Report Type:

Bulletin

Ticker

FUM1V@FH

Issuer

Fortum Oyj

GICS

Electric Utilities (55101010)

Sector

Global Issuers

Country

Finland

Region

Europe, Middle East, Africa

Format:

HTML

Summary: Fortum Oyj – 2014/04/23 – US$ 225.00

Fortum Oyj – 2014/11/20 – US$ 500.00

Summary: Fortum Oyj – 2014/11/20 – US$ 225.00

Research Update: Finnish Power Company Fortum Oyj 'A-' Rating Placed On CreditWatch Negative On Announced Disposal Of Regulated Business – 2015/03/18 – US$ 225.00

Research Update: Fortum Oyj Downgraded To 'BBB+' On Disposal Of Its Stable, Regulated Electricity Distribution Network; Outlook Stable – 2015/06/05 – US$ 225.00

Summary: Fortum Oyj – 2013/04/17 – US$ 225.00

Fortum Oyj – 2013/04/16 – US$ 500.00

Finnish Fortum Ratings Lowered To 'A-/A-2' On Weakening Operating Cash Flow And Credit Measures; Outlook Negative – 2012/11/27 – US$ 150.00

Research Update: Finnish Fortum Ratings Lowered To 'A-/A-2' On Weakening Operating Cash Flow And Credit Measures; Outlook Negative – 2012/11/27 – US$ 225.00

Fortum Oyj – 2012/04/04 – US$ 500.00

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MLA:	S&P Global Ratings’ Credit Research. "Bulletin: Fortum Ratings Unaffected By Announced Disposal Of Finnish Electricity Distribution Business" Dec 12, 2013. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Fortum-Ratings-Unaffected-By-Announced-Disposal-Of-Finnish-Electricity-Distribution-Business-1227095>

APA:	S&P Global Ratings’ Credit Research. (). Bulletin: Fortum Ratings Unaffected By Announced Disposal Of Finnish Electricity Distribution Business Dec 12, 2013. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Fortum-Ratings-Unaffected-By-Announced-Disposal-Of-Finnish-Electricity-Distribution-Business-1227095>

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