World's leading integrated chemicals producer, with a growing presence in Asia. "Verbund" integrated strategy that offers cost advantages and energy savings. Diversification benefits of producing commodity and specialty chemicals, complemented by a significant share of agrichemicals and oil and gas. Strong profitability and free cash flow generation. Moderate debt. Cyclicality of the chemicals industry. Historically high shareholder payouts, which have reduced financial flexibility. The ratings on Germany-based chemicals producer BASF SE reflect Standard&Poor's Ratings Services' view of the group's "strong" business risk profile as a fully integrated chemicals producer and its "modest" financial risk profile, as defined in our criteria. BASF's strong business risk profile stems from its leading global positions and highly diversified chemical portfolio, which is
