World's leading integrated chemicals producer. Unique "Verbund" (integrated) strategy that offers cost advantages and energy savings. Diversification benefits of producing commodity chemicals, specialty chemicals, agrochemicals, and oil and gas, as well as regional diversification. Strong free cash flow generation capability. Moderate debt. Demand that is sensitive to GDP development. High sensitivity to supply-and-demand imbalances in most divisions, resulting in some significant earnings and cash flow volatility. Historically high shareholder payouts and large, debt-financed acquisitions. The ratings on Germany-based chemicals producer BASF SE reflect Standard&Poor's Ratings Services' view of the company's "strong" business risk profile and global leadership as a fully integrated chemicals producer, and its "modest" financial risk profile. It benefits from a broadly diversified portfolio of commodity
