World's leading integrated chemical producer, with unique "Verbund" integration strategy; Improving business profile, owing to continuing expansion of oil&gas business and strong market position in the worldwide crop protection market; Excellent product diversification and strong geographical diversification; and Modest financial risk and high financial flexibility owing to strong cash flow generation capability. Highly capital intensive chemical and plastic business; Continuous need for cost and portfolio optimization in the chemical business; and Cyclicality in majority of end markets, resulting in volatile earnings and cash flow generation. The ratings on Germany-based chemicals producer BASF AG reflect the group's modest to minimal financial risk and its global leadership as an integrated chemical producer, benefiting from a broadly diversified portfolio of commodity
