The ratings on Fortum Oyj reflect the company's position as the second-largest Nordic energy utility, controlling competitive and flexible generation assets and stable energy utility monopoly operations, and operating a complex oil refining business in the Baltic Rim. Negative rating factors include exposure to volatile electricity and crude oil prices and refining margins, as well as some asset, market, and feedstock concentration in the refining operations. The financial profile is improving from a weak position on the back of asset disposals and margin improvement. No support from the 60.8% owner, the Republic of Finland, is factored into the ratings as the group is operated on a fully commercial basis. Low-risk electricity distribution and heating monopoly operations contribute about one-third of
