S&P: Braskem on positive watch

Standard & Poor’s said it placed its BB corporate credit rating on Braskem SA on CreditWatch with positive implications.

This reflects the positive trend for the company's business and financial profiles and the agency’s expectations that Braskem's capital structure will continue improving, even in a volatile raw material price environment.

According to S&P, the CreditWatch listing reflects Braskem's strengthening business profile after acquiring control of certain strategic assets in the Triunfo Petrochemical Complex, thus strengthening its operating integration into feedstock and reinforcing its leading market position in petrochemicals in Brazil.

The CreditWatch listing also reflects Braskem's improving financial profile, resulting from increasing cash flow resilience from its newly consolidated assets, relative to the incremental debt from the acquisition, the agency added.

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