The ratings on Finland-based integrated utility Fortum Oyj reflect its position as the second-largest Nordic electricity utility, competitive generation assets, and monopoly utility operations. The ratings are constrained by the group's exposure to volatile electricity operations and the increasing regulatory pressure on its monopoly distribution and heating operations. Fortum is implementing a significant capital investment program and is planning to invest about €2.8 billion in new power and heat capacity and €700 million in its electricity network in the Nordic region by 2010. It is also looking for acquisition opportunities in the target markets of Russia, Poland, and the Baltic rim. Although acquisition and investment budgets are expected to be guided by Fortum's target capital guidelines (net debt to EBITDA
