Corporate credit rating: AA-/Stable/A-1+ Standard&Poor's said today that BASF AG's lowering of its earnings forecast for the second quarter of 2001 does not affect the ratings or outlook on the company. The revised forecast, which sees no improvement over the same period in 2000 or first-quarter 2001, reflects continuing high raw-material prices, signs of weakening growth in Europe, and no indication of an economic upturn in the U.S. BASF continues to boast a strong business position and a very conservative financial profile. Following the sale of ethical pharmaceuticals business Knoll in the first quarter of 2001, BASF's leverage is very low, providing the company with ample financial flexibility.
