Inside information: S&P Global Ratings upgrades Fortum’s long-term rating to BBB+ with Stable Outlook

FORTUM CORPORATION INSIDE INFORMATION 25 MARCH 2024 AT 10:20 EET

S&P Global Ratings (S&P) has upgraded Fortum’s current long-term credit rating to BBB+ with Stable Outlook. The previous rating was BBB with Stable Outlook.

According to S&P, the upgrade reflects S&P’s view that Fortum's balance sheet is strong and its credit ratios are well in line with a 'BBB+' rating. S&P expects that Fortum will sustain its strong balance sheet over 2024–2026. It also assesses that the strong balance sheet provides Fortum with good protection from the impact of volatile Nordic power prices. In addition, S&P believes that Fortum's strategy reinforces its core position in the Nordics and highlights management's disciplined approach to investments and expansion at pace with demand growth. On a further positive note, S&P recognises that Fortum already has decarbonised most of its generation. With 98% of its power generation CO₂-free, “Fortum is among the best-positioned power generators in Europe to deliver net zero emissions, given it has one of the lowest carbon footprints per produced electricity unit among rated utilities”.

“We are extremely satisfied with the upgrade of Fortum’s credit rating to BBB+. This reflects our systematic efforts to strengthen our financial position and continuously ensure that we have a solid financial foundation to enable efficient strategy execution in the volatile and changing operating environment. We highly appreciate that this hard work and Fortum’s strong market position now has been acknowledged by S&P,” says Tiina Tuomela, CFO of Fortum.

Fortum’s financial position is very strong and the company’s objective is to maintain a credit rating of at least BBB. At the end of 2023, Fortum’s ratio for financial net debt to comparable EBITDA was at a low level of 0.5 times compared to the maximum level of 2.0-2.5 times.

S&P’s report is available as an attachment to this release.
 

Fortum Corporation

Ingela Ulfves
Vice President, Investor Relations and Financial Communications

Further information:

Investors and analysts:
Ingela Ulfves, VP, Investor Relations and Financial Communications, tel. +358 40 515 1531
Rauno Tiihonen, Director, Investor Relations, tel. +358 10 453 6150
Jouni Huttunen, VP, Treasury, tel. +358 50 452 4649

Media:
Fortum News Desk +358 40 198 2843

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www.fortum.com