We derive our issuer rating on Norway-based Yara International ASA from: Our anchor of 'bbb+', based on our "satisfactory" business risk and "modest" financial risk profile assessments for the company. Our one-notch deduction, reflecting our modifier of the company's financial policy as negative. This modifier incorporates the possibility that Yara may seek to make large acquisitions in the next two years, as part of its growth strategy. World's largest distributor of fertilizer, with good geographic diversity. Higher-margin specialty fertilizers that are a large contributor to profits. Joint ventures in low-cost gas areas and efficient production facilities. Profits anchored in the highly cyclical commodity nitrogen fertilizer industry. Exposure to high European gas prices. Commitment to keeping an adjusted funds from operations-to-debt
