Germany-based chemicals group BASF's 2010 and first-quarter 2011 operating performance has been impressive and we expect its credit metrics to stay well above our previous expectations. We believe management has made debt reduction a priority in 2011, which indicates a more supportive financial policy. We are raising the long-term rating to 'A+' from 'A'. The stable outlook factors in the supportive chemicals industry environment and our expectation that BASF will increase financial flexibility significantly in 2011 through debt reduction. On May 10, 2011, Standard&Poor's Ratings Services raised the corporate credit and unsecured debt ratings on Germany-based chemicals group BASF SE to 'A+' from 'A'. We affirmed the short-term corporate credit rating at 'A-1'. The outlook is stable. The
