World's largest distributor of fertilizer, with strong geographic diversification Improving gas cost position through joint ventures for ammonia production Prudent financial management policies Failing to pass higher energy costs on to customers Exposure to the cyclical agrochemical market 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; strong cost position derived from increasing capacity in countries with low gas costs; strong geographic diversification; and intermediate financial profile. The ratings are constrained by the high cyclicality of the ammonia business, which is very sensitive to supply-and-demand imbalances, often resulting in difficulties in timely passing on of energy-price volatility. Yara is also exposed
