World's largest distributor of fertilizer, with good geographic diversification. Operational flexibility with respect to sourcing and production capacity, including joint ventures with low-cost producers. Exposure to volatile and rising energy costs with concentration in Europe, an area of high-cost production. Focus on highly cyclical nitrogen production, with potential short- to medium-term oversupply reducing profitability. The ratings on Norway-based Yara International ASA incorporate our view of the company's "satisfactory" business risk profile, which is supported by 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
