S&P: Yara International view to stable

Standard & Poor's said it revised its outlook on Yara International ASA to stable from positive and affirmed the BBB long-term and A-2 short-term corporate credit ratings.

S&P said the outlook revision reflects its opinion that Yara's ambitious growth strategy and financial policy will limit potential ratings upside, despite strong operating performance and low leverage in the base case for the next couple of years.

The agency understands that the company's financial policy is geared toward the current BBB rating, rather than the BBB+ rating. Yara has accumulated cash as part of its strategy to expand through acquisitions, and S&P sees the risk of large debt-financed transactions in the next couple of years. This is reflected in the "negative" financial policy assessment, which lowers the rating by one notch.

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