Following a series of investments and acquisitions, Fortum's credit metrics have weakened, but the company still has a solid financial position with a sizable cash balance. We expect Fortum's leverage ratio will increase further as the company finances external growth or, potentially, returns to shareholders over the coming year. We are affirming our 'BBB+/A-2' ratings on Fortum. The stable outlook reflects our assumption that Fortum will stick to its public financial policy and investment criteria, and that its operating performance in generation, growth in the City Solutions segment, and business in Russia under capacity support agreements will remain supportive over the next two years. On June 28, 2017, S&P Global Ratings affirmed its 'BBB+/A-2' long- and short-term corporate ratings on
