World's largest distributor of fertilizer, with strong geographical diversification. Improving gas cost position through joint ventures for ammonia production. Prudent financial management policies. High sensitivity to gas price and the risk of failing to pass on higher energy costs to customers. Exposure to the cyclical agrochemical market. Production focus on highly cyclical nitrogen production. The ratings on Norway-based Yara International ASA reflect its leading position as the world's largest distributor of fertilizers and producer of nitrogen; its strong cost position derived from increasing capacity in countries with low gas costs; strong geographical diversification; and its intermediate financial profile. The ratings are constrained by the high cyclicality of the ammonia fertilizer business, which is very sensitive to supply-and-demand imbalances, resulting in
