Fortum has some characteristics that can support hybrid bond issuance, but the overall evidence points to only limited suitability.

**Positive factors for hybrid suitability**

- **Sector and business profile:** Fortum is an energy/utility company, which is generally a sector where hybrids can be relevant because cash flows can be relatively visible compared with cyclical industrial issuers. Its continuing operations generated sizeable revenue of **EUR 8.8bn** and comparable EBITDA of **EUR 2.4bn** in 2022.
- **Balance sheet metrics are not weak:** The provided S&P metrics are solid: **Net debt / EBITDA of 1.84x** and **FFO / net debt of 45.6%**. These are consistent with a reasonably strong investment-grade-style financial profile rather than a distressed or speculative-grade profile.
- **Liquidity remains meaningful:** Fortum ended 2022 with **EUR 3.9bn** of cash and cash equivalents, despite a very turbulent year.
- **Capital markets credibility:** As a large Finnish public utility/energy group, Fortum likely has institutional market access.

**Constraining factors**

- **No prior hybrid issuance:** The data explicitly states that Fortum did **not** issue hybrid bonds in 2021 or 2022 and has **never** issued hybrid bonds. Under the provided guidance, this is a strong signal against “Strongly Suitable” and points to “Not Suitable” or at most “Marginally Suitable.”
- **Improving leverage trend:** Moody’s adjusted leverage trend for 2022 is listed as **improving**. Hybrid bonds are most compelling when metrics are deteriorating and management needs equity credit to protect a rating. Here, the provided credit metrics already look healthy, and the trend is improving.
- **Limited need for rating support:** With **Net debt / EBITDA below 2x** and high FFO/net debt, Fortum does not appear to need hybrid equity credit to preserve rating headroom. A hybrid might improve adjusted leverage, but the marginal rating benefit would likely be limited.
- **Very volatile reported results in 2022:** The group reported a **EUR 10.3bn net loss**, driven by discontinued operations, and comprehensive income was also deeply negative. Although continuing operations remained profitable, the Uniper-related discontinued operations and balance sheet contraction indicate an exceptional restructuring year. That weakens the case for a clean, strongly attractive hybrid issuance story.
- **Market backdrop was less favorable:** Euro rates rose sharply in 2022, with 5Y swaps averaging **1.726%** versus negative levels in 2020–2021, and subordinated spreads also widened. Hybrid issuance would likely have been materially more expensive than in prior years.

**Assessment**

Fortum is not an obvious “Not Suitable” case because it is a large utility/energy issuer with investment-grade-style metrics and capital market access. However, it also is not “Strongly Suitable” because there is no established hybrid track record, no existing hybrid refinancing need, leverage metrics are already strong, and Moody’s trend is improving. The main rationale would be opportunistic balance-sheet flexibility or additional rating headroom rather than a core need.

Therefore, the best classification is **Marginally Suitable**.

<answer>Marginally Suitable</answer>