S&P turns Braskem outlook to negative

S&P said it changed its outlook for Braskem SA to negative from stable and affirmed all its ratings, including the BBB- ratings on the company, its senior unsecured notes and BB rating on its subordinated notes.

In a press release, the agency noted “Braskem SA has been posting very weak profitability in the past few quarters, given sluggish demand growth and significant capacity entering the market. And we expect these conditions to remain over the next few quarters.”

S&P said it now sees Braskem’s leverage near 7x in 2023.

“The negative outlook reflects that we could lower the ratings in the next 12 months if the company fails to reduce its debt to EBITDA to 3x-3.5x in 2024 and below 3x in 2025,” S&P said.

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