Fitch rates Braskem notes BB+

Fitch Ratings said it assigned a BB+ rating to Braskem America Finance Co.'s proposed notes issuance of $500 million due 2041, which will be unconditionally guaranteed by Braskem SA.

The guarantee will rank pari passu with other unsecured and unsubordinated obligations of Braskem. This issuance proceeds will be used to repay Sunoco's acquisition loan and other debt repayment.

Fitch assigned a foreign- and local-currency issuer default rating of BB+ to Braskem America Finance.

The outlook is positive, reflecting 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.

Braskem's ratings reflect its dominant position in the Brazilian and Latin American petrochemical sector, high exposure to domestic market performance, improvements Quattor's financial profile, higher operating cash generation and strong liquidity, the agency said.

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