FRANKFURT (Standard&Poor's) June 22, 2006--Standard&Poor's Rating Services said today it assigned its 'AA-' long-term debt rating to the proposed senior unsecured €500 million fixed-rate bonds (4.5%), maturing 2016, and the proposed senior unsecured €500 million floating-rate bonds, maturing 2009, issued by Germany-based chemicals group BASF AG (AA-/Negative/A-1+). "Proceeds of the bonds will be used for general purposes and partial financing of the acquisition of Engelhard Corp. (A-/Watch Pos/A-2) and the construction chemicals business of Degussa AG (BBB/Watch Neg/A-3)", said Standard&Poor's credit analyst Tobias Mock. The ratings on Germany-based chemicals producer BASF AG reflect the group's modest financial risk and its global leadership as an integrated chemicals producer, benefiting from a broadly diversified portfolio of
