I'll analyze Fortum Oyj's financial position and determine the appropriate utilization of hybrid bonds relative to S&P's 15% equity credit cap.

## Key Financial Analysis

**Capital Structure (end of 2022):**
- Total Equity: €7,737M
- Non-current financial liabilities: €3,658M
- Current financial liabilities: €4,127M
- Total debt (approximate): ~€7,785M
- Total adjusted capital (debt + equity): ~€15,522M
- S&P 15% cap on hybrid equity credit: ~€2,328M

**Profitability:**
- Revenue grew from €6,422M to €8,804M (2021→2022)
- Comparable Operating Profit: €1,871M (up from €1,429M)
- Comparable EBITDA: €2,436M (up from €2,016M)
- However, massive losses from discontinued operations: -€11,302M
- Net loss attributable to owners: -€2,416M
- Significant impairments: €905M

**Balance Sheet Deterioration:**
- Total assets dropped dramatically from €149,661M to €23,642M (Uniper deconsolidation)
- Equity dropped from €13,665M to €7,737M
- Retained earnings declined from €10,062M to €6,467M

**Cash Flow:**
- Operating cash flow from continuing operations: €2,104M (positive)
- But total operating cash flow was -€8,767M due to discontinued operations
- Significant debt repayments: €5,888M

**Factors Favoring Hybrid Issuance:**
1. The company went through a major restructuring (Uniper disposal), significantly weakening its balance sheet
2. Equity declined substantially, and hybrids could help shore up the capital structure
3. Continuing operations remain profitable with strong comparable EBITDA
4. The company needs to rebuild its balance sheet after massive losses
5. Interest rates have risen significantly (swap curves moved from negative to ~1.7-1.9%), making hybrid costs higher but still potentially attractive for equity credit

**Factors Against Full Utilization:**
1. The company is in a period of financial stress with massive losses from discontinued operations
2. Higher interest rate environment increases hybrid coupon costs
3. Corporate bond spreads have widened (iBoxx EUR Non-Financial IG sub-sen spread at ~2.3%)
4. The company's credit profile may have weakened, making hybrid issuance more expensive
5. Dividend was cut from €1.14 to €0.91 per share, suggesting some financial conservatism

**Assessment:**
Fortum has a clear need to strengthen its capital structure after the Uniper debacle. The continuing operations are solid with strong EBITDA generation. Hybrid bonds would provide meaningful equity credit support. However, the company is in recovery mode and the elevated interest rate environment makes full utilization expensive. The company still has reasonable leverage on continuing operations basis, and the core utility business generates stable cash flows that can support hybrid coupon payments. Given the need for balance sheet repair but also the cost considerations and the transitional nature of the financial situation, a moderate-to-high utilization makes sense.

The company would benefit significantly from hybrid issuance to rebuild equity credit, but given the financial stress and elevated costs, utilizing around 50-75% of the cap seems appropriate. The strong continuing operations and need for capital structure repair push toward higher utilization, while the recent financial distress and higher rates provide some caution.

<answer>50%</answer>