Fitch: Braskem outlook stable

Fitch Ratings said it affirmed Braskem SA's foreign- and local-currency long-term issuer default rating at BB+, national long-term rating at AA(bra), unsecured senior notes due 2014, 2017, 2018 at BB+, unsecured senior perpetual bonds at BB+ and 13th debenture issue at AA(bra).

The agency affirmed Braskem International's unsecured senior notes due 2015 at BB+.

The outlook was revised to stable from positive.

The revision reflects Braskem's relevant increase in leverage during 2008 and the more challenging environment for the company's business and the petrochemical industry worldwide in 2009, the agency said.

Ratings reflect Braskem's leadership position in the Brazilian and Latin American petrochemical sector, the agency said.

Ratings are also supported by its strong liquidity, moderate leverage, compensated by an extended debt payment profile, and solid, albeit volatile, operational cash flow, Fitch said.

The total debt-to-EBITDA ratio was 4.3 times, versus 2.6x for fiscal year 2007.

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