FINANCIAL TIMES: Basell notes at risk of a downgrade: “Moody's Investors Service, the credit rating agency, has placed… Basell America Finance Corporation and Basell Finance Company, a joint venture owned by Shell and BASF, on review for possible downgrade.”: “Shell and BASF put the company up for sale a year ago as part of Shell's plan to shed between $12bn and $15bn in non-core assets over three years.” (ShellNews.net) 24 Feb 05

By Lina Saigol

Published: February 24 2005

Moody's Investors Service, the credit rating agency, has placed the Baa3 ratings for the senior unsecured notes of Basell America Finance Corporation and Basell Finance Company, a joint venture owned by Shell and BASF, on review for possible downgrade.

Moody's believes that a probable change in ownership - either through an outright sale or an equity market transaction - is likely to lead to a reduction in the quality of the operational and financial support that is currently enjoyed by Basell and is a key factor in the Baa3 rating.

Last week, Shell and BASF took three bidders through to the third round of the auction for Basell, which is expected to fetch about €4.4bn ($5.8bn).

They are Europe's Ineos Chlor, National Petrochemical of Iran and Haldia Petrochemicals of India.

Shell and BASF put the company up for sale a year ago as part of Shell's plan to shed between $12bn and $15bn in non-core assets over three years. Lina Saigol, London