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European rating agency. Objective, transparent, independent.

Fortum Oyj

Rating History

Rating Watch Outlook Decision Date Action Validity Date Maximum Validity
BBB Watch NEW 04.03.2022 08.03.2022
BBB Outlook STA 28.01.2022 07.02.2022
BBB Outlook STA 21.07.2021 23.07.2021
BBB Outlook STA 02.06.2020 09.06.2020
BBB+ Watch NEW 11.10.2019 16.10.2019
BBB+ Outlook STA 11.04.2019 25.04.2019

News

  • 08.03.2022
    Creditreform Rating has placed the BBB unsolicited corporate issuer rating of Fortum Oyj, as well as the BBB unsolicited corporate issue rating of the long-term local currency senior unsecured notes issued by Fortum Oyj on Watch NEW. The outlook is not applicable. These issues are included in the list of ECB-eligible marketable assets, which can be found on the ECB's website. For more details regarding the ratings, please refer to our press release below.
  • 07.02.2022
    Creditreform Rating AG confirmed the unsolicited corporate issuer rating of Fortum Oyj at BBB. The outlook remains stable. The divesture of non-core assets throughout the year had a positive effect on liquidity, net debt, and thus the rating. Power generation volumes increased considerably in all of Fortum's relevant markets, predominantly due to economic recovery, as well as comparably colder weather during the first months in 2021. The aforementioned effects are the main reason for the positive development adjusted by non-recurring events.The extraordinary increase in energy prices led, on the one hand to significant negative net changes in the fair values of derivatives and, on the other hand, to increased liquidity needs due to higher margin requirements. The fair value changes had, despite the high negative impact on earnings, only a limited effect on the rating, as they are mainly caused by IFRS effects and do not affect liquidity.
  • 23.07.2021
    Creditreform Rating AG confirmed the unsolicited corporate issuer rating of Fortum Oyj at BBB. The outlook remains stable. The primary reason that led to this rating result are the Company´s large scale, diversification, and successful hedging strategy, which considerably reduces exposure to adverse market developments. Additionally, the strong linkage to the Finnish government was also a positive factor contributing to the rating result. During 2020 Fortum was confronted with a difficult market environment due to lower demand and lower power prices caused by the effects of the COVID-19 pandemic, unusually high temperatures in the Nordics and negative currency developments, which dampened operating performance. During the first quarter of 2021 its market environment stabilized and Fortum managed to improve its results in all of its business segments. The integration of Uniper SE into the Group continues to progress. We currently believe that the deterioration of the structured financial key ratio analysis and the heavier focus on fossil fuels following the consolidation of Uniper from the second quarter in 2020 onwards still outweigh the positive scaling and diversification effects. However, according to the Group´s strategy the Company will continue to focus on optimizing its balance sheet in 2021 and 2022. This was evidenced by the agreement made on 30 June 2021 to sell its share in Exergi for a total consideration of approximately EUR 2.9 billion and an expected considerable tax exempt capital gain which will strengthen its balance sheet and provide financial headroom for further investments.
  • 09.06.2020
    Creditreform has downgraded the unsolicited corporate issuer rating of Fortum Oyj to BBB. The Watch NEW is withdrawn and replaced with a stable outlook. The main reason behind this decision is the expected deterioration of the financial key figures in 2020 following the consolidation of Uniper SE as of 31.03.2020. Furthermore, the business profile of Fortum Oyj has deteriorated due to the stronger focus of Uniper on fossil energy sources in its generation fleet .
  • 16.10.2019
    Creditreform Rating AG has adjusted the current unsolicited corporate rating of Fortum Oyj and the unsolicited corporate issue ratings of Fortum Oyj from BBB+ with stable outlook to BBB+ with supplement WATCH NEW. The main reason behind this decision is Fortum´s intention, announced on 8 October 2019, to acquire further 20.5% of shares on the German Uniper SE for a total consideration of approximately EUR 2.3 billion, thus increasing its share to 70.5%. The closing of the agreement between Fortum and the both major stockholders, Elliott and Knight Vinke, is subject to regulatory approvals in Russia and the United States. Despite the expected positive diversification and synergy effects, as well as enhanced influence over the Uniper´s strategy, we anticipate that the rating will be at first negatively impacted by the acquisition. In the case of closing the transaction, we expect a deterioration of Fortum´s financials following increased debt burden and as a result of consolidation effects. Furthermore, the business profile of Fortum would deteriorate due to the stronger focus of Uniper on fossile energy sources in its generation fleet.
  • 25.04.2019
    Creditreform Rating has carried out an unsolicited rating of Fortum Oyj. The rating has been set to BBB+ with stable outlook.