S&P: Terra Industries rating unaffected by earnings

Standard & Poor's said Thursday that Terra Industries Inc.'s (B+/negative/--) announcement that its fourth-quarter earnings improved year-over-year does not affect the ratings or outlook on the company.

Terra reported net income, excluding about $29 million of net income tax benefits, of about $9 million for the fourth quarter of 2003, compared with a net loss from continuing operations of almost $17 million for the comparable period in 2002.

S&P said the ratings are supported by Terra's position as a leading North American producer of nitrogen fertilizer and the expectation of better earnings. More important, the company's liquidity position improved in the fourth quarter: at Dec. 31 the company had no borrowings under its revolving credit facility and $87 million of cash stemming from a large amount of customer prepayments.

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