Overview

• S&P Global lowered Braskem’s global rating to CCC- from B+ and cut senior unsecured notes to CCC- and subordinated notes to C, assigning a negative outlook.
• S&P’s Brazil unit reduced the national scale rating to brCCC- from brA- with a negative outlook.
• The agencies warned of further downgrades if a distressed restructuring is announced or if the company misses interest or principal payments.
• Analysts cited weakening liquidity tied to first-half cash burn and uncertainty over renewing the revolving credit facility that matures in December 2026.
• Braskem reported R$9.3 billion in cash in June and access to a roughly R$5.5 billion revolver, and it has hired Lazard, Cleary Gottlieb and E. Munhoz Advogados to evaluate options.