Fitch rates Braskem notes BB+

Fitch Ratings said it assigned a BB+ to Braskem Finance Ltd.'s proposed add-on issuance of $350 million senior unsecured note in a reopening of its 7% notes due in 2020. The notes are unconditionally guaranteed by Braskem SA.

The company's long-term foreign- and local-currency issuer default ratings are BB+ and its national scale rating is AA(bra).

The outlook is stable.

Braskem's ratings reflect its dominant position in the Brazilian and Latin American petrochemical sector, the agency said.

The company enjoys a competitive advantage within the region's petrochemical industry due to its vertical integration, strong relationship with Petrobras and raw material diversification, Fitch said.

The company's ratings are also supported by its strong liquidity position and manageable debt amortization schedule, the agency said.

Braskem should benefit from cost and operating synergies as well as an improving business environment, which should result in a net debt-to-EBITDA ratio approaching 3 times by the end of 2010 from a pro forma 2009 figure of 5x considering the acquisitions, Fitch said.

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