S&P affirms Braskem

Standard & Poor's said it affirmed the BB+ long-term corporate credit rating and brAA+ national scale long-term corporate credit rating on Braskem SA and the BB+ rating assigned to the $500 million bonds due 2018 and the $250 million notes due 2015 issued by subsidiaries Braskem Finance Ltd. and Braskem International Ltd., respectively.

The outlook is stable.

"The ratings on Braskem reflect the company's exposure to volatile input costs and working capital swings; its high debt leverage and weak credit metrics; increasing competition from imports and the consolidation of local competitors; and the risks inherent in its internationalization plans," S&P analyst Victor Saulytis said in a statement.

"These risks are partly offset by: Braskem's more resilient cash flows arising from its leading business and market position in Brazil's petrochemical industry; its adequate liquidity and smooth debt amortization schedule; its economies of scale; some geographic diversification; and the company's technological expertise," Saulytis said.

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