...June 21, 2021 FRANKFURT (S&P Global Ratings) June 21, 2021--S&P Global Ratings today said that Germany-based BASF SE's (A/Negative/A-1) rating headroom has improved due to a swift rebound in operating performance amid continuously favorable market conditions since fourth-quarter 2020. This may offset the negative impact of the postponement of the Wintershall Dea initial public offering (IPO) to beyond 2021, from the second half of the year previously, on the world's largest diversified chemicals group's credit metrics. Although improved, we note that BASF's rating headroom remains limited, given that our current forecast of adjusted funds from operations to debt for 2021 is slightly above 35% without the IPO--the minimum required for the 'A' rating. It is also relying on continuously solid market conditions in second-half 2021 and beyond and its ability to increase earnings and cash flow while maintaining strict cost and capital spending control. We understand that the decision to delay...
