Moody's rates Braskem notes Ba1

Moody's Investors Service said it assigned a Ba1 foreign-currency rating to the about $750 million senior unsecured notes due 2020 to be issued by Braskem Finance Ltd. and guaranteed by Braskem SA, which has a global-scale corporate family rating of Ba1 and Brazilian national scale rating of Aa2.br.

The outlook is stable.

The proceeds will be used to refinance existing debt, thus improving the company's debt maturity profile without increasing its leverage, Moody's said.

The rating is not constrained by Brazil's sovereign ceiling of Baa2, the agency said.

The ratings are supported by its large size as the largest petrochemical company in Brazil and in the Americas by production capacity, long-term client relationships, product customization and logistics-related barriers for thermoplastic resin imports, Moody's said.

The ratings also consider the company's high exposure to volatile naphtha prices, low geographic diversification and event risk associated with the company's internationalization process, the agency said.

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