The ratings on Norway-based Yara International ASA incorporate our view of the group's "satisfactory" business risk profile, which is supported by the group's position as the world's largest distributor of fertilizers. Yara has a strong marketing network and is a leading producer of premium fertilizers, compared with commodity products such as ammonia and urea. The ratings further reflect our view of the group's operational flexibility with respect to sourcing and production capacity, strong liquidity, and currently robust credit metrics. Yara's production is geographically diverse. The group operates large-scale plants in Europe and Canada. The ratings are constrained by the high cyclicality of the nitrogen business, and the group's exposure to volatile and rising energy costs, with a modest part of
