S&P ups Braskem

Standard & Poor's said that it raised the corporate credit rating on Braskem SA to BBB- from BB+ and its Brazil national-scale ratings to brAAA from brAA+.

The outlook is stable.

The upgrade reflects Braskem's improving cash flow metrics and liquidity, as well as the expectations that the company will report higher and more resilient credit metrics in the future because of its dominant market position in Brazil, a diversified feedstock mix, favorable supply contracts and operating synergies with acquired Quattor, the agency said.

The ratings consider industry cyclicality, the effect of market and economic conditions on demand for petrochemical products and some margin fluctuation due to volatile raw material and product prices, the agency added.

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