FORTUM CORPORATION INVESTOR NEWS 19 MARCH 2020 AT 20:00 EET
Today Standard & Poor’s has resolved its CreditWatch Negative placement for Fortum by affirming its current BBB long-term rating, with a negative outlook. As previously stated, Fortum’s key objective is to have a solid investment-grade rating of at least BBB to preserve financial flexibility and good access to capital markets. Standard & Poor’s assessment is in line with Fortum’s objective.
The resolution on the rating by Standard and Poor’s follows the completion of all regulatory steps allowing Fortum to close the acquisition of shares in Uniper of at least 20.5 %, held by funds managed by Elliott Management Corporation and its affiliates and Knight Vinke Energy Advisors Limited and its affiliates, in two tranches. The purchase price, amounting up to a maximum of EUR 2.6 billion for the overall transactions is fully financed through existing cash resources and committed credit facilities. Post-closing of the transactions, Fortum will retain substantial undrawn committed credit facilities of approximately EUR 4.5 billion, with medium-term maturities in 2022-23 (including extension options), in addition to currently existing cash reserves of approximately EUR 2.5 billion.
Fortum will continue to focus on maintaining strong operational cash flows and on prioritising capital expenditures, which is even more important today given the prevailing macro and economic uncertainty brought by COVID-19. Fortum continues its ongoing strategic review of district heating businesses in Poland, in the Baltics, and in Järvenpää, Finland as announced in February. Fortum already completed the divestment of district heating assets in Joensuu, Finland, for EUR 530 million, as well as secured capital release proceeds of EUR 250 million through the introduction of a new owner into its Nordic wind portfolio, thereby realising significant value potential to further enhance financial flexibility.
Ingela Ulfves, VP, IR and Financial Communications
Investors & analysts:
Ingela Ulfves, VP, IR and Financial Communications, tel. +358 40 5151 531
Måns Holmberg, IR Manager, IR and Financial Communications, tel. +358 44 518 1518
Jouni Huttunen, VP, Treasury, tel. +358 50 452 4649
Pauliina Vuosio, VP, Executive Communications, tel. +358 50 453 2383