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Bond Market News
Braskem Downgraded to CC by Fitch
January 5, 2026
Braskem was downgraded by three notches to CC from CCC+ by Fitch. The downgrade reflects Fitch’s heightened uncertainty over Braskem’s ability and willingness to meet near-term debt obligations, particularly a heavy concentration of coupon payments totaling about $130mn in January 2026. Although Braskem reported $1.3bn of cash as of September 2025 and fully drew a $1bn standby credit facility in October, Fitch views the growing reliance on liquidity and bank lines as a sign of tightening financial flexibility amid weak operating cash flow and elevated event risk. Fitch also flagged increased risk of a debt restructuring, citing persistent pressure on petrochemical spreads and the company’s engagement of financial advisors, which may indicate preparations for restructuring or other creditor-unfavorable actions. Finally, Fitch noted that Braskem’s credit profile could be further affected by the potential sale of Novonor’s controlling stake to a fund advised by IG4, with the final impact dependent on the transaction’s structure, financing and governance outcomes.
Braskem’s dollar bonds traded stable with its 5.875% 2050s at 34.8 cents on the dollar.
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