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 The Watch NEW is withdrawn and replaced with a stable outlook.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 .
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.
Creditreform Rating has carried out an unsolicited rating of Fortum Oyj. The rating has been set to BBB+ with stable outlook.