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Braskem is assigned investment grade rating by S&P.

31/03/2011

Evaluation by Standard & Poor's cites the company's stronger business and liquidity

The risk-rating agency Standard & Poor's has just upgraded Braskem's rating from "BB+" to "BBB-", effectively assigning the company an investment grade rating. It also upgraded Braskem's ratings on Brazil's National Scale from "brAA+" to "brAAA".  The outlook remained stable.

According to the agency, the upgrade reflects Braskem’s stronger cash flow and liquidity, the merger with Quattor and the faster-than-expected capture of synergies, as well as the improvements on the operational and financial fronts.

According to analysts at S&P, the debt reduction presented in the 2010 results should continue this year and over the coming years, as also should its cash flow growth. The agency classified Braskem's liquidity as strong, highlighting that its projections call for the company efficiently managing its capital, which should lead to lower financing requirements in the medium term.

By classifying its outlook for Braskem as stable, S&P affirmed its belief that the company will continue to improve its operating results and that the capture of synergies and the favorable market conditions will allow Braskem to expand its revenue and cash flow. 

According to Marcela Drehmer, Braskem’s Chief Financial and Investor Relations Officer, "reaching investment grade is a major achievement and the result of the efforts made by the entire company, the improvements in results, the optimization of debt and the permanent commitment to growth without neglecting financial discipline.".

 

Source: Braskem