# Braskem Says It Remains Focused on Resilience; S&P Cuts Rating to B+

*Company seeks to mitigate petrochemical downturn as S&P flags high leverage and weak liquidity.*

- Published: 2025-09-19
- Section: Insights
- Tags: Braskem, Braskem Idesa, chemical
- URL: https://brazilstockguide.com/insights/braskem-says-it-remains-focused-on-resilience-sp-cuts-rating-to-b/

**By Brazil Stock Guide –** **Braskem S.A.** (B3: BRKM3, BRKM5; NYSE: BAK) said it remains focused on resilience initiatives to offset the prolonged petrochemical downturn and strengthen the competitiveness of Brazil’s chemical industry. The statement came Friday (Sept. 19, 2025), after **S&P Global Ratings** downgraded the company’s global rating to **B+ from BB-**, with a **negative outlook**.

S&P said cost-cutting efforts, working-capital improvements and potential asset sales may not be enough to reverse cash burn in the coming quarters. The agency forecasts **net debt-to-EBITDA above 7x** and **funds from operations to debt below 7%** through 2026 — metrics no longer consistent with a BB- profile.

S&P also lowered Braskem’s ratings on senior unsecured notes to **B+** (from BB-) and on subordinated notes to **CCC+** (from B-). All instruments were removed from *CreditWatch negative*, where they had been placed in August.

In Mexico, subsidiary **Braskem Idesa S.A.P.I.** hired restructuring advisers, prompting S&P to cut its rating to **CCC/Watch Neg**, while Fitch had already lowered it to **CCC+**. Although Idesa’s debt is non-recourse, S&P warned that a potential distressed restructuring could further limit Braskem’s financial flexibility.

The downgrade also reflects weak petrochemical spreads and global oversupply. Relief could come from anti-dumping duties on U.S. and Canadian polyethylene imports and tax-relief measures under debate in Brazil’s Congress, including the **REIQ** and the proposed **PRESIQ**. Still, leverage would need to fall **below 6x by 2026** to support a stable outlook.

The **negative outlook** signals another potential downgrade within six months if Braskem fails to improve cash flow.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/braskem-says-it-remains-focused-on-resilience-sp-cuts-rating-to-b/