S&P rates Braskem bonds BB+

Standard & Poor's said it assigned a BB+ senior unsecured debt rating to the $400 million bond due 2018 to be issued by Braskem Finance Ltd. and unconditionally guaranteed by Braskem SA (BB+/stable).

Proceeds will be used to prepay part of the $1.2 billion bridge loan raised in 2007 to acquire a controlling stake in Ipiranga Group's petrochemical assets, helping the company adjust its debt amortization schedule to its cash generation.

The rating mirrors Braskem's credit profile, which in turn reflects the company's exposure to volatile input costs, sizable debt and risks with internationalization plans, S&P said.

These risks are partly offset by Braskem's leading business and market position in the Brazilian petrochemical industry, a fair financial profile, economies of scale and increasing technological expertise, the agency said.

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