The ratings on Finland-based Fortum Oyj reflect its position as the second-largest Nordic utility, controlling competitive and flexible generation assets and stable utility monopoly operations, as well as operating a premium oil business in the Baltic Rim. Negative factors include exposure to volatile electricity and oil prices and refining cash flows, foreign exchange exposure in the oil business, as well as some asset, market, and feedstock concentration in the refining operations. The financial profile is adequate for the rating level. Total adjusted net debt was €6.3 billion at year-end, 2003 (including €700 million in off-balance-sheet debt). No support from the 60.6% owner, the Republic of Finland, is factored into the ratings, as the group operates on a commercial basis. Fortum's
