Norway-based fertilizer distributor and producer Yara International has announced that it plans to acquire nitrogen producer Terra Industries. Following the partially debt-financed acquisition, we believe Yara's credit metrics could remain below the level that we consider commensurate with an "Intermediate" financial risk profile. We are placing the ratings on Yara on CreditWatch with negative implications. We expect to resolve the CreditWatch on the close of the acquisition. Any downgrade is likely to be limited to one notch. On Feb. 15, 2010, Standard&Poor's Ratings Services placed the 'BBB' long-term and 'A-2' short-term corporate credit ratings on Norway-based fertilizer distributor and producer Yara International ASA on CreditWatch with negative implications. Yara announced today that it plans to acquire U.S.-based nitrogen
