BASF profit warning raises fears of down cycle for chemicals
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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