CRISIL has enhanced the rated amount while retaining 'AAA/Stable/A1+' ratings on the debt programmes of BASF India. The rated amount enhanced to Rs 2.5 billion from Rs 1 billion.

CRISIL's ratings continue to reflect BASF India's' healthy business risk profile, supported by its diversified revenue profile, the business and financial support it continues to receive from parent BASF SE (rated 'A+/Stable/A-1' by Standard & Poor's [S&P's]), and its healthy financial risk profile marked by healthy net worth and liquidity.

These rating strengths are partially offset by BASF India's exposure to risks inherent in the domestic agrochemicals industry, the weak profitability of its functional materials and solutions (FMS) segment because of the ongoing slowdown in the automotive and construction sectors, and exposure to risks related to timely completion and stabilization of its ongoing project in Dahej (Gujarat).

CRISIL believes that BASF India will continue to benefit from its diversified revenue profile and the support it receives from its parent BASF SE. BASF India's financial risk profile will moderate over the medium term because of its large ongoing debt-funded capex.

The outlook may be revised to 'Negative' in case of lower-than-expected growth in BASF India's revenue and profitability, delayed stabilization at the greenfield project in Dahej, or larger-than-expected debt funding of  capex, or substantially larger-than-expected dividend payments. Furthermore, a change in S&P's rating on BASF SE will be a rating sensitivity factor.

Shares of the company declined Rs 18, or 2.06%, to trade at Rs 856. The total volume of shares traded was 3,425 at the BSE (3.23 p.m., Tuesday).