The ratings on Norway-based Yara International ASA incorporate our view of the group's "satisfactory" business risk profile, which is supported by its position as the world's largest distributor of fertilizers, its strong marketing network, and its position as the leading global producer of premium fertilizers. 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, with large-scale plants in global locations. The ratings are constrained by the high cyclicality of the nitrogen business and the group's exposure to volatile and rising energy costs, and particularly its high exposure to European gas prices. Overall, we believe only a modest part of
