Sweden-based power and heat provider Vattenfall has over the past year taken several measures that have improved its business mix and reduced its exposure to volatile merchant power activities. In addition, political agreements and decisions in Sweden and Germany have increased visibility of the group's future earnings and liabilities, following the Swedish Energy Agreement on lowering both nuclear- and hydro-related taxes, and the German fund solution for nuclear waste management. We are therefore revising our outlook on Vattenfall to stable from negative and affirming our 'BBB+/A-2' ratings on the company. The stable outlook reflects our assumption that Vattenfall's significant investments in wind farms and the relatively high share of electricity distribution and heating networks will translate into solid earnings growth
