Why did S&P and Fitch downgrade Braskem’s credit rating to default-equivalent levels?

S&P downgraded Braskem’s rating from CCC- to D, and Fitch from CC to C, because a São Paulo court granted Braskem a 60-day injunction suspending debt payments to creditors participating in its mediation proceedings — a measure both agencies assessed as equivalent to a default, since it allows Braskem to cease payment of principal and interest obligations for that period.

What is the scope and legal basis of Braskem’s 60-day debt standstill?

The standstill stems from a precautionary measure approved on 26 June by the Second Bankruptcy and Judicial Reorganization Court of São Paulo, suspending for 60 days creditor actions—including collection of principal and interest—against Braskem and certain subsidiaries involved in its mediation proceedings; Braskem emphasized this relief has a 'limited, strictly financial scope' and does not affect obligations to suppliers, customers, or other stakeholders, all of which remain in full force and are being fulfilled normally.

Brazil’s Braskem Credit Rating Cut to Default-Equivalent Amid 60-Day Debt Standstill

Jun 30, 2026

Brazilian petrochemical giant Braskem was downgraded to default-equivalent ratings by Fitch and S&P following a court-granted 60-day debt standstill. The move signals severe liquidity risks, though the company insists supplier obligations remain unaffected during mediation.

icis

2025-11-20

Braskem, Norsk e-Fuel partner to develop e-naphtha as plastics feedstock

2025-12-22

Clariant Rejects Latest Ethylene-Purchasing Cartel Damage Claims from MOL, Braskem

2026-01-12

Mexico’s Braskem Idesa Proposes Debt Restructuring Amid Somber Petrochemical Prospects

2026-01-14

Braskem Idesa, Creditors Disagree on $2.1B Debt Restructuring

2026-01-22

Braskem Shares Surge as Investor Victor Adler Raises Stake Above 5%