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Bond Market News
Braskem Idesa Downgraded to CC from CCC+ by Fitch
November 19, 2025
Braskem Idesa and its senior secured bonds were downgraded to CC from CCC+ by Fitch. The downgrade reflects a heightened risk of imminent default and follows concerns that the company will miss its November 15 interest payment and enter a five-day cure period, which Fitch considers a default-like process. The downgrade stems from Braskem Idesa’s deteriorating liquidity position and lack of disclosed alternatives to meet upcoming obligations. Fitch also highlighted growing restructuring risks after the company hired Lazard and other advisors commonly involved in distressed debt situations. Despite historically competitive feedstock costs and strong relative EBITDA margins, Braskem Idesa’s risk profile remains constrained by single-asset and single-product exposure, and higher susceptibility to supply and contract disruption. As of end-June, the company held $100mn in cash against $2.2bn in total debt, with Fitch estimating liquidity at about $60mn at the end of August. Most of the company’s debt sits in bonds maturing in 2029 and 2032, with a recent refinancing extending a $95mn term loan to 2029. However, the near-term payment pressure overshadows the otherwise favorable maturity profile, Fitch noted. The company has faced multiple notches downgrades by both S&P and Fitch in the last few months.
Braskem’s dollar bonds have fallen by over 20% over the last six months. For instance its 7.45% 2029s has dropped by almost ~24 points in last 6 months and currently trades at 59.4, yielding 23.8%
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