The ratings on Fortum Oyj reflect the group's position as one of the two largest Nordic electricity utilities, with competitive generation assets and monopoly utility operations, mainly in Finland and Sweden. Negative rating factors include exposure to volatile and competitive electricity operations, and increasing regulatory pressure on Fortum's monopoly distribution and heating operations. In the first half of 2006, Fortum announced new target capital structure guidelines, and the board subsequently approved a €500 million share buyback program. The company also acquired E.ON Finland Oyj in 2006 for €750 million, and paid €980 million in dividends, of which €473 million consisted of profits from the 2005 disposal of its oil operations. Consequently, debt increased to €5.0 billion at June 30, 2006,
