Fortum’s 2022 profile argues for a cautious-to-moderate use of hybrids rather than maximizing the S&P equity-credit cap.

Key considerations:

- Balance sheet shrank dramatically after the Uniper-related restructuring: total assets fell from EUR 149.7bn to EUR 23.6bn, and equity fell from EUR 13.7bn to EUR 7.7bn.
- Reported net loss was very large at EUR -10.3bn, mainly due to discontinued operations, while comprehensive income was also deeply negative.
- Continuing operations remained profitable: EUR 1.0bn profit from continuing operations and EUR 1.9bn comparable operating profit, suggesting the core business still has earnings capacity.
- Cash flow from continuing operations was positive at EUR 2.1bn, but total operating cash flow was negative because of discontinued operations.
- Leverage and liquidity need support, but the company is also emerging from a major strategic and financial shock, so fully maximizing hybrid issuance could be viewed as aggressive.
- Market rates rose sharply in 2022, making hybrids more expensive. The 5Y–10Y swap curve moved from near zero/negative in 2021 to around 1.7%–1.9% in 2022, while credit spreads also widened. This reduces the attractiveness of issuing hybrids up to the full cap.
- Because hybrids can strengthen S&P-adjusted capital and protect ratings, some use is beneficial, but Fortum should preserve flexibility and avoid overreliance.

A balanced position is therefore to use about half of the available S&P hybrid equity-credit capacity.

<answer>50%</answer>