Fitch: Braskem negative

Fitch Ratings said it has affirmed the foreign and local currency issuer default ratings of Braskem SA and its subsidiaries at BBB-, as well as its AA+ (bra) national-scale rating.

Fitch has revised the outlook to negative from stable.

The negative outlook reflects Fitch's concern about Braskem's ability to lower its elevated leverage levels, given the poor outlook of the petrochemical spread with naphta prices, the agency said.

Additional challenges for the company are to recover its market-share while implementing price increases, Fitch noted, adding that a downgrade is likely if the company's net leverage continues to exceed 3.0x in 2013.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.