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S&P raises Braskem to investment grade

September 03/2021

MOSCOW (MRC) -- Braskem recently announced that the rating agency S&P Global Ratings (S&P) raised the company's global scale risk level to BBB-, with a stable outlook, said the company.

According to the statement, the agency highlighted that the upgrade of the rating to investment grade reflects the considerable improvement in profitability and cash generation indicators, the company's commitment to leverage and the expectation that Braskem will continue to benefit from the highs petrochemical spreads in the coming quarters.

"The company reinforces its continuous commitment to financial rigidity and maintenance of a solid cash position, maintaining a very long indebtedness profile", says the document.

As MRC informed before, Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Braskem S.A. produces petrochemicals and generates electricity. The Company produces ethylene, propylene, benzene, toluene, xylenes, butadiene, butene, isoprene, dicyclopentediene, MTBE, caprolactam, ammonium sulfate, cyclohexene, polyethylene theraphtalat, polyethylene, and polyvinyl chloride (PVC).
Author:Anna Larionova
Tags:PVC, PP, PE, Braskem, Brazil, Russia.
Category:General News
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