Germany-based global chemical group BASF has announced its €3.1 billion acquisition of specialty chemical company Cognis. BASF's cash- and debt-financed transaction points to less credit-supportive financial policies than we assumed in the past. We are lowering our rating on BASF to 'A' from 'A+'. The outlook is stable as we expect strong operating performance in 2010 and we understand that management is committed to near-term deleveraging. On June 23, 2010, Standard&Poor's Ratings Services lowered to 'A' from 'A+' its long-term corporate credit rating on Germany-based global integrated chemical group BASF SE. At the same time, we affirmed our 'A-1' short-term corporate credit rating on BASF. The outlook is stable. Our rating action reflects our view of BASF's more
