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. Negative rating factors include exposure to volatile electricity operations and increasing regulatory pressure on the group's monopoly distribution and heating operations. By 2010, Fortum intends to invest about €2.8 billion in new power and heat capacity and €700 million in its electricity network, as well as looking for acquisition opportunities. While acquisition and investment budgets are expected to be guided by Fortum's target capital guidelines (net debt to EBITDA between 3.0x and 3.5x), Fortum's business profile would weaken with any acquisitions in its target markets of Russia, Poland, and the Baltic markets, albeit that
