The ratings on Norway-based Yara International ASA reflect its leading position as the world's largest distributor of fertilizers, with a strong marketing network, and producer of nitrogen. Yara's production is geographically well diversified: The company runs large-scale plants in Europe, and also in Canada via the recently acquired production facility of Saskferco Products Inc. In addition, it sources low-cost gas supplies through joint-venture operations (about 30% of total production) in Trinidad, Qatar, Australia, and Russia. Yara further benefits from access to phosphate via its mine in Finland. The ratings remain constrained, however, by the high cyclicality of the nitrogen business, which is very sensitive to supply-and-demand imbalances. This often results in difficulties in the timely passing on of energy price
