STOCKHOLM (Standard&Poor's) Sept. 14, 2004--Standard&Poor's Ratings Services said today it affirmed its 'BBB+/A-2' corporate credit rating on Finland-based energy company Fortum Oyj (Fortum). The outlook is stable. The rating affirmation follows the announcement that the company plans to demerge its oil business, Fortum Oil Oy, through a share dividend and the sale of shares to be carried out in spring 2005. "The affirmation reflects the fact that Fortum's business risk will decrease, as the higher-risk oil operation will be fully separated from the group," said Standard&Poor's credit analyst Andreas Zsiga. The loss of about 15%-20% of its cash flows compares with a transfer of about the same share of net debt to Fortum Oil.
