The ratings on Fortum Oyj reflect the company's position as the second-largest Nordic utility, controlling competitive and flexible generation assets and stable utility monopoly operations, and operating a complex oil refining business in the Baltic Rim. Negative rating factors include exposure to volatile electricity and 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. Fortum has benefited from high Nordic electricity prices in 2002/2003 caused by poor hydro-power
