What is the current credit rating status of Braskem, and why did S&P and Fitch downgrade it?

S&P Global Ratings downgraded Braskem’s debt obligations to ‘D’, its lowest rating, while Fitch downgraded it to ‘C’, both reflecting the impact of a São Paulo court granting Braskem a 60-day injunction to suspend payments to creditors involved in mediation proceedings; S&P stated this relief is ‘equivalent to a standstill’, and Fitch characterized the injunction request as indicating ‘a process similar to a default’ had begun, though it applied only to financial creditors—not suppliers, customers, or other stakeholders.

How are Braskem’s financial troubles affecting polyethylene supply and market confidence in Brazil?

Braskem’s financial difficulties have led polyethylene (PE) buyers in Brazil to increasingly seek alternative suppliers due to concerns that its financial instability could disrupt output at plants supplying most of the country’s PE; meanwhile, Brazilian financial daily Valor reported that Braskem’s talks with creditors were showing no progress as the 60-day injunction window nears expiration, further undermining market confidence.

Outlook: Latin America’s Petrochemicals Brace for Turbulent Second Half Amid Trade Wars, Debt Crises, Oversupply

Jul 31, 2026

Latin America's petrochemical industry faces a turbulent second half driven by Braskem's debt crisis and US tariff disputes. Regional performance diverges as Mexican majors gain while Venezuela's sector collapses amid broader economic challenges.

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