The ratings on Finnish power utility Fortum Oyj reflect its position as one of the largest integrated utilities in the Nordic region, its diverse and competitive generation portfolio, and its stable electricity distribution and heat operations. These strengths are partly offset by the group's exposure to the competitive and increasingly challenging Nordic electricity wholesale and supply markets, volatile wholesale power prices, exposure to the higher-risk Russian market, significant capital expenditure program, and volatility in cash flows caused by currency hedging effects on internal loans denominated in Swedish krona. The ratings further reflect our methodology for rating government-related entities (GREs) and our opinion that there is a "moderate" likelihood that the Finnish government will provide timely and sufficient extraordinary support in
