BASF profit warning raises fears of down cycle for chemicals

BASF workers from corp media gallery credit to BASF SE 230x150
By Alex Radford, Owen Sanderson
11 Jul 2019

If A1/A+ rated BASF was worried its credit rating would drop, S&P Global has given it some good news. On Thursday, the agency said it expected the chemical producer's Monday profit warning to have only a moderate impact on Its credit ratings. But a gloomy outlook still hangs over the chemicals sector, and companies in the low triple-B band may well have a tougher time in the bond market.

BASF said it expected Ebit before special items to be up to 30% lower this year than in 2018. It cited the US-China trade war and lower global car production among its problems.

“It's going to weigh on investor appetite," said Thomas Wrigglesworth, a chemicals and basic materials analyst ...

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