On June 25, 2008, Standard&Poor's Ratings Services affirmed its 'A-' long-term corporate credit ratings on Finland-based integrated utility Fortum Oyj. The outlook is stable. At the same time, the ratings were removed from CreditWatch, where they had been placed with negative implications on March 3, 2008, after an announcement that Fortum would acquire up to 100% of Russia-based Territorial Generating Co. 10 (TGC-10) for a maximum of €2.7 billion. TGC-10 is a power and heat company operating in the Urals region with annual production of 18 terawatt-hours of electricity and 27 terawatt-hours of heat. We expect Fortum, which currently owns 76% of TGC-10, to take full control of the company following a mandatory offer to minority shareholders, which
