...- Fortum's financial leverage remains high from the Uniper acquisition, resulting in limited investment capacity, given the group's aim to first restore its balance sheet. - We see the strategic review of its consumer solutions business as Fortum's latest move to decrease debt, but believe a disposal would also reduce cash flow diversification. - The consolidated group's large share of carbon-intensive and merchant generation assets and the lower-than-sector-average investment capacity limit its growth prospects, but we believe this is mitigated by the group's financial policy and strong commitment to the current rating level. - We are affirming our '###' long-term rating on Fortum. - The negative outlook signals the group's limited rating headroom over 2020-2021, as Fortum continues to execute its disposal program (1.2 billion announced so far) to reach the 35% adjusted funds from operations (FFO) to debt required for the rating. Once disposals are executed, we will need to understand...
