S&P: Yara on watch

Standard & Poor's said it placed the BBB long-term and A-2 short-term corporate credit ratings on Yara International ASA on Creditwatch with negative implications.

According to the agency, Yara announced that it plans to acquire Terra Industries Inc. (BB/stable) for an estimated total consideration of $4.7 billion.

"The additional debt burden of the transaction will, in its view, strain Yara's already weakened financial risk profile, even though we anticipate that the transaction will be over 50% equity financed," said credit analyst Sophia Dedemadis.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.