Moody's rates Braskem notes Ba1

Moody's Investors Service said it assigned a Ba1 foreign-currency rating to the $400 million unsubordinated unsecured notes due 2018 to be issued by Braskem Finance Ltd. and guaranteed by Braskem SA.

The outlook is stable.

The rating incorporates Braskem's leading market position in Brazil and Latin America and its above-average operating margin that results from high capacity utilization rates, long-term client relationships, product customization and barriers for thermoplastic resin imports, according to the agency.

The Ba1 foreign-currency rating for the proposed notes considers the low level of secured debt on a consolidated basis, Moody's said. The rating is not constrained by the Baa3 sovereign ceiling.

As of March 31, the issuer's total adjusted debt-to-EBITDA ratio was 3.7 times.

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