S&P gives Braskem Netherlands loans B+

S&P said it assigned its B+ issue-level rating to Braskem Netherlands Finance’s proposed subordinated notes benchmark sized. Braskem Netherlands Finance is a wholly owned subsidiary of Braskem SA, which will guarantee these notes.

Braskem’s rating is BB+. S&P said it derived the B+ from the issuer rating by lowering the rating by two notches for subordination and another for loss absorption or cash conservation features.

“Braskem views the issuance as a strategic tool to reduce leverage. We understand that the company intends to maintain or replace these securities as a long-term form of capital on its balance sheet,” S&P said in a press release.

The company will use proceeds to repay debt and for general corporate purposes.

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