Fitch rates Braskem notes BB+

Fitch Ratings said it assigned a BB+ rating to the proposed $400 million notes due 2018 to be issued by Braskem Finance Ltd., a wholly owned special purpose company of Braskem SA.

The notes will be unconditionally guaranteed by Braskem.

The outlook is positive.

Proceeds will be used to partially repay a bridge loan used to acquire Ipiranga Group's petrochemical assets.

Ratings reflect Braskem's position in the Brazilian and Latin American petrochemicals sector, moderate leverage, strong liquidity, adequate debt composition, financial flexibility and solid but highly volatile operating cash flow, according to the agency.

As of March, the issuer's total debt-to-EBITDA ratio was 3.2 times and its net debt-to-EBITDA ratio was 2.6 times.

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