The ratings on Germany-based chemicals producer BASF AG reflect the group's conservative financial profile, its broadly diversified portfolio of commodity and specialty products, its leading market positions in the global chemicals industry, and the increasing importance of the group's nonchemical activities. Over the 6 months ended June. 30, 2004, BASF had sales of almost €18.4 billion ($22.2 billion). The group's size and diversity allow for efficient portfolio management, which represents an important source of strategic flexibility. In particular, BASF intends to further reduce its strong dependence on the core chemicals business by investing in activities that follow different cycles, such as agrochemicals, and oil and gas. The group's financial position is strong, especially after a good second quarter in 2004,
