Fitch rates Braskem bonds BB+

Fitch Ratings said it assigned a BB+ rating to Braskem SA's proposed perpetual bonds issuance of about $350 million. The company has a long-term foreign-currency issuer default rating of BB+, long-term local-currency issuer default rating at BB+ and national scale rating at AA(bra).

The outlook is stable.

The bonds will be issued through Braskem Finance Ltd. and will be unconditionally and irrevocably guaranteed by Braskem. The guarantee will rank pari passu with other unsecured and unsubordinated obligations of Braskem.

The proceeds will be used for the repayment of debt, including the 9.75% perpetual bonds and 9% perpetual bonds issued in 2005 and 2006, respectively, and for general corporate purposes, Fitch said.

The 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, strengthened with the recent acquisition of Quattor Participacoes SA, Fitch said.

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