Leading market position in Sweden supported by its strong position and flexible hydropower generation assets. Moderate share of cash flows from relatively stable and low-risk electricity distribution and district heating operations. Reduced but still significant exposure to depressed and commodity-driven wholesale power prices, weighing on profitability. Relatively high share of asset retirement and pension obligations in adjusted debt. Willingness to reduce debt, demonstrated by asset disposals over the past few years, cost reductions, and gradually reducing investment levels. The negative outlook reflects our view that the group is likely to remain reliant on external factors, such as the challenging and volatile power price environment, to retain credit quality. We could lower the ratings if we believed that Vattenfall was unlikely
