We expect Nordic power generator Fortum Oyj will maintain a strong balance sheet, based on our projections of S&P Global Ratings-adjusted EBITDA of 1.0x-1.5x over 2025-2027, despite softer power prices. We anticipate Fortum's funds from operations (FFO) to debt to remain between 50%-55% over 2025-2027--well above the rating threshold--supported by disciplined capital expenditure (capex) and expansion that aligns with demand growth, excluding potential acquisitions. Positively, Fortum has already decarbonized most of its generation. However, we expect dividends will consume a major part of the group's FFO, resulting in negative discretionary cash flow to debt. We affirmed all our ratings on Fortum, including our 'BBB+' long-term issuer credit rating. The stable outlook indicates our assumption Fortum will sustain S&P Global Ratings-adjusted
