Thanks to its excellent business profile and good financial position, BASF has good credit ratings compared with its competitors in the chemical industry. At year - end, the rating agency Standard & Poor’s valued BASF’s creditworthiness at “AA- /A-1+/outlook negative” and the rating agency Moody’s at “Aa3/P-1/outlook under review for downgrade.” At the beginning of 2009, Standard & Poor’s downgraded BASF’s rating to a level of “A+/A-1/outlook negative” and Moody’s reduced its rating to “A1/P-1/outlook stable.”
At year-end 2008, the financial indebtedness of the BASF Group was €14.5 billion with a liquidity of €2.8 billion. Approximately 57% of financial indebtedness was long-term debt with a maturity of over one year.
Our medium to long-term debt financing is based on corporate bonds with a balanced maturity profile. BASF issued several bonds totaling €1.6 billion as well as promissory notes for €553 million in 2008.
Despite the tense situation on the credit markets, BASF was able to finance itself with commercial paper without any difficulty. In October 2008, we increased the maximum potential issuing volume of our commercial paper program from $7.5 billion to $12.5 billion. As of December 31, 2008, BASF had used approximately $6.1 billion of this program. As back-up for the program, committed and unused credit lines of $6 billion are available as well as a credit line of CHF 3.5 billion to finance the acquisition of Ciba.
More information on can be found in the notes
- Year-end 2008, BASF Group financial indebtedness of €14.5 billion, approximately 57% of which was long-term with a maturity of over one year
- No difficulties in financing through commercial papers in 2008, commercial paper program increased to $12.5 billion
- Liquidity at year-end 2008: €2.8 billion