Position as the second-largest integrated utility in the Nordic region Well-diversified and competitive generation Stable monopoly electricity distribution and heating operations Exposure to the competitive Nordic electricity wholesale and supply markets Increasing regulatory risk of monopoly utility operations in Sweden and Finland The ratings on Fortum Oyj reflect the group's position as one of the two largest Nordic electricity utilities, with competitive generation assets and monopoly utility operations, mainly in Finland and Sweden. Negative rating factors include exposure to volatile and competitive electricity operations, and increasing regulatory pressure on Fortum's monopoly distribution and heating operations. In the first half of 2006, Fortum announced new target capital structure guidelines, and the board subsequently approved a €500 million share buyback program. The
