Fitch lowers Vattenfall view to negative

Fitch Ratings said it affirmed Vattenfall AB's long-term issuer default rating and senior unsecured rating at A- and revised the outlook to negative from stable.

Fitch also said it affirmed Vattenfall's subordinated capital securities at BBB.

The outlook revision reflects challenging market conditions for conventional power generation in Vattenfall's key regions of operations: Continental Europe, the Nordic region and the Netherlands, the agency said.

Consequently, Fitch said it projects that cash flow from the company's main business segment, power generation, will shrink in the next three years.

The ratings consider the company's well-diversified business profile and its quasi-monopolistic heat and regulated distribution business, the agency said.

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