The ratings on Norway-based Yara International ASA reflect our view of the company's "satisfactory" business risk profile and "intermediate" financial risk profile. The ratings are supported by Yara's position as the world's largest distributor of fertilizers, its strong marketing network, and its role as a leading producer of nitrogen fertilizer. The ratings further reflect the company's operational flexibility in terms of sourcing and production capacity. The ratings are constrained by the high cyclicality of the nitrogen business, and the company's exposure to volatile and rising energy costs. Reported debt on Dec. 31, 2010, was Norwegian krone (NOK) 13.3 billion. The ratings on Yara reflect its stand-alone credit quality with no upward notching to reflect extraordinary state support. The government of
