Our financing policy aims to ensure our solvency at all times, limiting the risks associated with financing and optimizing our cost of capital. We preferably meet our external financing needs on the international capital markets. We strive to maintain a solid A rating, which ensures unrestricted access to financial and capital markets. Our financing measures are aligned with our operational business planning as well as the company’s strategic direction and also ensure the financial flexibility to take advantage of strategic options.

We have solid financing, both for ongoing business and for investment projects initiated or planned. Corporate bonds form the basis of our medium to long-term debt financing. These are issued in euros and other currencies with different maturities as part of our €20 billion debt issuance program. The goal is to create a balanced maturity profile, diversify our financing and optimize our debt capital financing conditions.

For short-term financing, we use BASF SE’s global commercial paper program, which has an issuing volume of up to $12.5 billion. As of December 31, 2022, commercial paper with a carrying amount of €654 million was outstanding under this program. A firmly committed, syndicated credit line of €6 billion with a term until 2026 covers the repayment of outstanding commercial paper. It can also be used for general company purposes. The credit line and another short-term credit line of €3 billion that was taken out in April 2022 were not used at any point in 2022. Our external financing is therefore largely independent of short-term fluctuations in the credit markets.

BASF Group’s most important financial contracts contain no side agreements with regard to specific financial ratios (financial covenants) or compliance with a specific rating (rating trigger).

To minimize risks and leverage internal optimization potential within the Group, we bundle the financing, financial investments and foreign currency hedging of BASF SE’s subsidiaries within the BASF Group where possible. Foreign currency risks are primarily hedged centrally using derivative financial instruments in the market.

Cash flows from operating activities amounted to €7,709 million, compared with €7,245 million in the previous year. The improvement was primarily due to lower cash tied up in net working capital as well as to higher depreciation and amortization. Net income declined by €6,150 million year on year to –€627 million. The loss is mainly attributable to the negative equity-accounted earnings contribution from Wintershall Dea AG (–€4,853 million), which is eliminated as a noncash effect in miscellaneous items. Depreciation and amortization of property, plant and equipment and intangible assets was €514 million above the prior-year figure.

Free cash flow, which remains after deducting payments made for property, plant and equipment and intangible assets from cash flows from operating activities, represents the financial resources remaining after investments. It amounted to €3,333 million in 2022 after €3,713 million in the previous year.


Cash flow


BASF enjoys good credit ratings, especially compared with competitors in the chemical industry. Standard & Poor’s most recently confirmed BASF’s A/A-1/outlook negative rating on March 3, 2023. Moody’s confirmed its rating for BASF of A3/P-2/outlook stable on January 18, 2023. Fitch maintained its rating of A/F1/outlook stable on November 30, 2022.

Credit Ratings



Standard & Poor’s A/A-1/outlook negative


A3/P-2/outlook stable


A/F1/outlook stable

Last Update May 26, 2023