The ratings on Finland-based energy company Fortum Oyj reflect the group's position as one of the two largest Nordic electricity utilities, controlling competitive generation assets and utility monopoly operations. Negative rating factors include exposure to volatile and competitive electricity operations. When the planned separation of the group's oil business is complete, Fortum's business risk will decrease, as it will eliminate risks related to volatile oil refining margins, oil-related foreign exchange risk, as well as some asset, market, and feedstock concentration in the refining operations. Fortum plans to demerge its oil business, Fortum Oil Oy, through a share dividend and the sale of shares in spring 2005. Fortum's business risk will decrease, as the higher-risk oil operation will be fully separated
