Source - SMW
Fitch Ratings has revised BASF's outlook to negative from stable and affirmed  the chemicals group's long-term issuer default rating at 'A+'.

Fitch said the negative outlook reflected BASF's peak in leverage and subsequent uncertainty around de-leveraging to the agency's guideline, following planned acquisitions of Bayer AG'sseed assets for €5.9bn and Solvay SA's (BBB/positive) polyamide assets for €1.6bn. 

Fitch said these were expected to be funded by debt and cash on balance sheet and the agency forecast funds from operations (FFO) adjusted net leverage to peak at around 2.5x at end-2018 before gradually declining to around 2.1x by 2020. 

Fitch said that in its opinion, these metrics left limited headroom under the current rating for any unforeseen cash outflows, including further acquisitions.