Fitch views Braskem Idesa negatively

Fitch Ratings said it changed the outlook for Braskem Idesa, SAPI to negative from stable and affirmed the long-term foreign- and local-currency issuer default ratings at BB- and senior secured notes at BB-. Fitch previously assigned a recovery rating of RR4 to the notes but no longer maintains the recovery rating.

“The negative outlook reflects Braskem Idesa's vulnerability to deteriorating sector and economic conditions and sensitivity to polyethylene (PE) prices as the producer of a single commodity chemical. Fitch expects the company's net leverage to be high in 2023 and 2024. Braskem Idesa faces execution risk as it begins construction of an ethane import terminal and also needs to secure financing for the project,” the agency said in a press release.

© 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.