The ratings on Germany-based chemicals producer BASF SE reflect Standard&Poor's Ratings Services' view of the group's "strong" business risk profile as a fully integrated chemicals producer, and its "modest" financial risk profile. BASF's key business strengths include its leading global positions and increasingly diversified portfolio, with a strategic shift to more specialty performance chemicals. This includes greater focus on consumer and health&nutrition end markets, as evidenced by the acquisition of Cognis. Other strengths relate to BASF's resilient agrochemicals segment and diversity from midsize oil and gas activities. We view the group's profitability as robust, with current peak EBITDA margins of 17%-18%, and demonstrated by robust free operating cash flow (FOCF) generation. Relative weaknesses are the chemical
