Braskem Idesa was upgraded to BB- from B+ by Fitch, with a stable outlook. Braskem’s amendment to the supply ethane contract with Pemex (to build an ethane terminal and supply of 30,000 bpd by Pemex) reduces uncertainties regarding sustainability and profitability, and importantly, political and operational risks, Fitch said. Braskem’s deleveraging trend is also a positive – net leverage ratio is set to drop from 6.7x and 6x in 2020 and 2019 to ~3.7x in 2022 and 4.2x in 2023. The company has also improved its financial flexibility by refinancing its amortizing project finance debt. Fitch adds that Braskem is expected to post record results during its 2021 earnings with EBITDA expected at $610mn
Braskem Idesa’s dollar bonds were higher with its 7.45% 2029s up 0.6 points to 99.71, yielding 7.5%.
