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, and increasing regulatory risk in the monopoly distribution operation. In April 2005, Fortum demerged its oil business, Neste Oil Oy, through a share dividend and the sale of shares. The separation of the higher-risk oil business has reduced Fortum's business risk. The loss of about 15%-20% of its forecast cash flows (30% in 2004) compares with a transfer of about the same share of net debt to Neste Oil. Fortum does not maintain any direct or indirect exposure to the
