S&P lifts Terra

Standard & Poor's said it raised the corporate credit rating on Terra Industries Inc. to BB from BB- and the $330 million senior unsecured notes due 2017 to BB from BB-.

The outlook is stable.

S&P said the upgrade reflects improved earnings and financial profile after several quarters of unprecedented strength in nitrogen fertilizer demand and pricing, which is expected to continue over the next couple of years.

Ratings reflect a weak business position, highly competitive commodity business and input cost volatility, the agency said.

Partially offsetting these risks are Terra's leading position, long-term demand prospects and strong cash flow protection measures and liquidity, which are backed by a prudent financial policy, S&P noted.

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