On July 15, 2008, Standard&Poor's Ratings Services affirmed its 'BBB' long-term and 'A-2' short-term corporate credit ratings on Norway-based fertilizer company Yara International ASA following the company's announcement that it plans to acquire Canada-based Saskferco Products Inc. The outlook is stable. The C$1.6 billion acquisition will be debt financed via existing facilities; however, we expect credit protection ratios on a pro forma basis for the acquisition to remain well within expectations for the rating, with funds from operations (FFO) to debt of above 45% for 2008. Yara's financial profile continues to benefit from the very favorable global supply and demand balance in the agrochemical industry. Tight supply conditions combined with strong demand for fertilizers--supported by robust agricultural commodity
