Fitch rates Braskem notes BB+

Fitch Ratings said it assigned a BB+ rating to Braskem Finance Ltd.'s proposed $750 million of notes due 2021, which will be unconditionally guaranteed by Braskem SA.

The outlook is positive.

Proceeds will be used to refinance debt.

Braskem's BB+ long-term foreign-currency and local-currency issuer default ratings and AA(bra) national-scale rating remain unchanged.

The ratings consider the expectation of ongoing improvements in Braskem's operating cash generation, which should result in a leverage reduction trend while maintaining strong liquidity, sufficient to cover debt scheduled amortizations in the next two years, Fitch said.

The ratings reflect Braskem's dominant position in the Brazilian and Latin American petrochemical sector, strong and less volatile margins when compared to its global peers, positive free cash flow, strong liquidity and extended debt profile that allows it to mitigate the volatility inherent to the cyclical petrochemical industry, the agency said.

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