S&P gives Braskem bonds BB

Standard & Poor's said it assigned its BB senior unsecured debt rating to the proposed up to $275 million bonds due January 2017 to be issued by Braskem SA (BB/stable).

The bonds will rank pari passu with the company's other senior unsecured notes, the agency said.

"The bonds have been rated at the same level as the corporate credit rating and will be used for general corporate purposes," said S&P credit analyst Reginaldo Takara.

S&P added that the ratings on Braskem reflect its exposure to volatile input costs as well as to the associated working capital swings, dependence on its home market for EBITDA and sales generation in a context of increasing competition due to the consolidation and expansion of other large local players and the risks associated with the company's growth and internationalization plans, which are gradually gaining momentum.

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