On Oct. 4, 2004, Standard&Poor's Ratings Services affirmed its 'AA-' long-term and 'A-1+' short-term corporate credit ratings on Germany-based chemicals group BASF AG. The outlook remains stable. The affirmation follows BASF's announcement of its intention to buy back €500 million ($614.1 million) worth of shares. The group has already carried out buybacks totaling €500 million to date this year. The ratings reflect BASF's broadly diversified portfolio of commodity and specialty products, its leading market positions in the global chemicals industry, the increasing importance of its nonchemical activities, and a strong financial profile. Nevertheless, Standard&Poor's is concerned about the group's decision to use its excess cash flow to increase returns to shareholders just as the chemicals cycle
