As part of its strategic focus on institutional investors, Scope Ratings is offering corporate credit ratings on a subscription basis only via its new credit intelligence platform, ScopeOne.

The rating still reflects BASF’s strong position in the global chemicals industry, holding between first and third position for about 70% of its businesses. The rating is limited by the considerable EBITDA contribution of its cyclical Chemicals division.

On July 8, 2019, BASF Group lowered its outlook for both the second quarter and fiscal year 2019 as global industrial production cools down, especially the global automotive industry combined with other negative effects.

Credit metrics remain in line with rating case, despite headwinds from weaker economic conditions, M&A, and the long period of low water levels at the Rhine River.

BASF Group adjusted its outlook for 2018 due to more challenging conditions for its Chemicals segment, as well as cost impacts from the low water levels in the Rhine; expected credit metrics are supported by exit of the Oil and Gas business next year.

The ratings reflect strong position in global chemicals, high diversification in different geographies and large portfolio of specialty chemicals. Scope Ratings expects solid free cash flow generation and conservative financial policy to continue.

Following the release of final 2017 numbers, Scope has updated its financial forecasts for BASF

Following Scope’s recent affirmation of the BASF ratings, the group announced two major acquisitions: the polyamide/nylon business of Solvay, and significant parts of Bayer’s seed and herbicide business.

The ratings mainly reflect the strong position in global chemicals, high diversification in different end markets, notably in specialty chemicals, and expectations that free cash flow levels and the conservative financial policy will continue.

The first-time ratings for BASF SE are driven by the group’s credit-positive business risk profile, strong position in the global chemical markets, and conservative financial policy.