Norway-based fertilizer distributor and producer Yara International has announced that it will not pursue the acquisition of nitrogen fertilizer producer Terra Industries following a higher bid from CF Industries. We are affirming the 'BBB' long-term and 'A-2' short-term corporate credit ratings on Yara and removing the ratings from CreditWatch Negative. The negative outlook reflects uncertainty as to how the company will achieve its growth strategy, given the attempt at acquiring Terra Industries; Yara has low financial headroom at the rating to absorb any unforeseen debt or partially debt-financed acquisitions. On March 15, 2010, Standard&Poor's Ratings Services affirmed the 'BBB' long-term and 'A-2' short-term corporate credit ratings on Norway-based fertilizer distributor and producer Yara International ASA and removed the
