Fitch and S&P have downgraded Braskem’s rating after the company entered guardianship, leading to a 5.75% drop in B3’s actions.

Summary

• Fitch downgraded Braskem’s credit rating from CC to C last Friday.
• S&P downgraded the credit rating from issuer and emission from brCCC- to D.
• Braskem’s activities were supported by a 5.75% increase in trading on the B3 exchange this Monday.
• JPMorgan revised its recommendation to neutral and lowered the target price from R$ 15 to R$ 7.50.
• Financial creditors are temporarily unable to collect debts for 60 days due to the suspension of the tutela injunction.
• Brask’s debt payments amount to $549 million in July and $878 million in the third quarter.

Braskem saw its credit ratings downgraded by two risk rating agencies last Friday following a court ruling that temporarily halted debt collection by specific financial creditors for 60 days.

Fitch lowered the rating from CC to C, and S&P Global downgraded it from brCCC- to D. Additionally, petrochemical stocks dropped by 5.75% on Monday (30) at 1 pm (Brasília time) on the B3 exchange.

The 2nd Court of Deaths and Judicial Recoverys of São Paulo granted Braskem’s request for temporary protection, halting debt collection by specific financial creditors for 60 days. This move preceded actions taken by risk agencies.

Fitch and SP Postpones

Fitch downgraded the CC rating of Braskem C and also reduced the ratings of Braskem America Finance Company and Braskem Netherlands Finance B.V. The agency stated that if Braskem fails to meet financial obligations or declare a restructuring plan, the ratings will be downgraded to ‘RD’ for restricted default or ‘D’ if the company files for judicial recovery.

S&P Global reduced Braskem’s emission and credit ratings from brCCC- to D. The agency also removed the br4 recovery rating (40%) from the 16th emission of petrochemical debentures and downgraded the notes from brCCC- (sf) to D (sf) in the 1st and 2nd series transactions of the 124th emission.

Debt stress and available cash

Braskem’s overall debt payments amount to $549 million in July 2026 and $878 million in the third quarter of this year, while the company’s projected cash balance in June 2026, excluding Braskem Idesa, was $795 million.

JPMorgan reduces its recommendation and target price.

JPMorgan downgraded its recommendation on Braskem’s stocks to neutral and reduced the target price from R$ 15 to R$ 7.50, as reported by Reuters. In contrast, petrochemical stocks dropped by 5.75% on B3, while the Ibovespa index increased by 1.09% to 171,309.94 points.

• Market
• B.
• Braskem
• JPMorgan Bank
• Petrochemical substances
• Out-of-court debt collection