• World's largest distributor of fertilizer, with good geographic diversification • Benefits from joint ventures with low-cost producers • Operational flexibility with respect to sourcing and production capacity • Exposure to volatile and rising energy costs • Focus on highly cyclical nitrogen production with potential oversupply in the medium term reducing profitability. • Concentration in European high-cost production area The ratings on Norway-based Yara International ASA reflect its position as the world's largest distributor of fertilizers, with a strong marketing network, and as a leading producer of nitrogen fertilizer. The ratings further reflect the company's operational flexibility with respect to sourcing and production capacity. Yara's production is geographically well diversified: The company runs large-scale plants in Europe and Canada. In
