Weaker industry conditions in commodity chemicals and oil and gas are significantly affecting two out of BASF's five business segments. We now believe BASF's credit metrics will remain below our previous expectations and no longer expect the company will reduce leverage in the next two years. We are therefore lowering our long-term rating on BASF to 'A' from 'A+' and affirming the short-term rating at 'A-1'. The stable outlook reflects the diversity and resilience of BASF's overall business with a substantial share of less volatile specialty chemicals. On March 14, 2016, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on Germany-based chemicals producer BASF SE to 'A' from 'A+'. The outlook is stable. We also affirmed our
