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, as defined in our criteria. BASF's strong business risk profile stems from its leading global positions and highly diversified chemical portfolio, which shows a strategic shift to more specialty and solution-based chemicals. In addition, the share of sales in emerging growth markets is rising (34% in 2011). For instance, BASF's acquisition of Cognis in 2010 has increased its exposure to the consumer and health and nutrition end markets. Other strengths relate to BASF's resilient agrichemicals segment and diversity from midsize oil and gas activities. We view
