Fitch lifts Braskem to stable

Fitch Ratings said it affirmed the foreign- and local-currency issuer default ratings of Braskem SA and its subsidiaries at BBB-.

Fitch also affirmed Braskem’s national scale rating at AA+ (bra).

The outlook also was revised to stable from negative.

Braskem also has a long-term national rating of AA+(bra) and BBB- rating on its unsecured senior notes due 2017.

Braskem International Ltd. has a BBB- rating on its unsecured senior notes due in 2015.

The outlook revision incorporates a belief that Braskem’s credit profile, while weakly positioned within the current rating, will strengthen over the medium term, Fitch said.

This is the result of a positive trend for cash-flow recovery as result of expected lower equity investments in the competitive Mexico’s XXI Ethylene Project, medium-term tax reliefs, healthy petrochemical spreads and Brazilian real depreciation, the agency said.

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