The ratings on Fortum Oyj reflect the Fortum group's position as the second-largest Nordic energy utility, controlling competitive and flexible generation assets and stable utility monopoly operations, and operating a complex oil refining business. These strengths are balanced by exposure to volatile market conditions both in electricity generation and supply, prices for crude oil and refining margins, as well as some asset, market, and feedstock concentration in the refining operations. Further asset disposals, synergy-related cost savings, and continued prudent management are expected to improve the financial position from its current weak standing. Fortum had €7.8 billion (including preference shares of €1.2 billion) in debt at June 30, 2002. The Fortum group is 60.8% owned by the Republic of Finland (AAA/Stable/A-1+),
