The ratings on Finland-based integrated utility Fortum Oyj reflect its position as one of the two largest Nordic electricity utilities, its competitive generation portfolio, and its stable utility operations. These strengths are partly offset by the company's exposure to competitive electricity operations, volatile wholesale power prices, exposure to the less mature and higher risk Russian market, and significant capital expenditure program. Fortum is targeting €1 billion-€1.5 billion of annual capital expenditures over the next five years. Following its €2.5 billion acquisition of Russia-based power and heat producer Territorial Generating Co. 10 (TGC-10) earlier this year, Fortum plans to invest about €2.5 billion in new capacity, of which €1.3 billion has been financed through an issue of shares in TGC-10. Although
