The ratings on Fortum Oyj reflect the group's position as one of the two largest Nordic electricity utilities, controlling competitive generation assets and utility monopoly operations, mainly in Finland and Sweden. Negative rating factors include exposure to volatile and competitive electricity operations, and increasing regulatory pressure in the monopoly distribution and heating operations. In February 2006 Fortum announced new guidelines regarding its target capital structure and proposed a €1 billion share buyback program for the coming three years. The company has also reached an agreement to acquire E.ON Finland in 2006 for €750 million, and plans to pay out €980 million in dividends, of which €473 million will consist of profits from the disposal of its oil operations in 2005.
