Moody’s downgrades BASF

Moody’s Investors Service said it downgraded to A3 from A2 the senior unsecured notes ratings of BASF SE and its guaranteed subsidiary BASF Finance Europe NV. It also downgraded to A3 from A2 the senior unsecured ratings of revenue bonds guaranteed by BASF.

Moody’s also changed the outlook for both entities to stable from ratings under review. This concludes the rating review for downgrade started on April 1, the agency said.

The downgrade reflects BASF’s rating ratios had already been weak for the A2 rating when entering the coronavirus outbreak, which also limits the potential for improvement in case of a recovery in 2021, the agency said.

In explaining the stable outlook, the agency cited the company’s actions to bolster its liquidity.

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