Size and diversity of operations that allow for efficient portfolio management; Leading market positions in the global chemicals industry, with well-integrated commodity and specialty activities; and Conservative financial profile and strong financial flexibility. Chemicals intermediates business with high exposure to petrochemical feedstock price volatility; and Earnings affected by the cyclical swings of chemicals, agrochemicals, and crude oil markets. The ratings on Germany-based chemicals producer BASF AG reflect the group's conservative financial profile, its broadly diversified portfolio of commodity and specialty products, its leading market positions in the global chemicals industry, and the increasing importance of the group's nonchemical activities. Over the 12 months ended Sept. 30, 2003, BASF had sales of almost €33 billion ($40 billion). The group's size and
