Fitch: Braskem notes BBB-

Fitch Ratings said it assigned a BBB- rating to Braskem Finance Ltd.'s proposed notes issuance of about $500 million due 2022, which will be unconditionally guaranteed by Braskem SA.

The issuance will rank pari passu with other unsecured and unsubordinated obligations of Braskem.

The proceeds will be used to repay short- and medium-term debt.

Braskem has a long-term foreign issuer default rating of BBB-, long-term local-currency issuer default rating of BBB- and national scale rating of AA+(bra).

The outlook is stable.

The ratings reflect the company's leading position in the Latin-American petrochemical sector as the sole thermoplastic resin producer in Brazil, ongoing strengthening of its business base within the global petrochemical industry and its strong liquidity position and manageable debt schedule amortization profile, Fitch said.

The ratings also are supported by its strong shareholder structure with Grupo Odebrecht and Petroleo Brasileiro SA as its two main shareholders, the agency said.

Braskem has the challenge to reduce its leverage to levels more commensurate with the BBB- rating, Fitch said.

The company's operating performance in 2011 was frustrated by adverse market conditions, the agency said.

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