Braskem Hits Near-Default Grade Even as Its Shares Rally
Rating agencies Fitch and S&P downgraded Brazilian petrochemical firm Braskem to near‑default levels on Monday. Despite the downgrades, the company's shares rose about six percent, lifting the São Paulo index. Braskem faces a cash‑flow squeeze, with July debt service of roughly $549 million against an estimated cash balance of $800 million and no fresh capital from co‑owner Petrobras.
- ▪Fitch cut Braskem's rating to a C grade and S&P placed it in default territory, citing the company's court‑protected structure as resembling a default process.
- ▪The company's shares gained nearly six percent on the same day, outperforming the broader market in São Paulo.
- ▪Braskem warned that paying a July invoice could trigger early‑payment clauses on approximately 54 billion reais of debt, increasing its near‑term financing pressure.
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Brazil Business Braskem Hits Near-Default Grade Even as Its Shares Rally By Richard Mann · June 30, 2026 · 4 min read Daily Brief The morning intel from across Latin America. Free. Subscribe By subscribing you agree to our privacy policy. We never share your email. Markets Key Facts —The cut. Fitch lowered Braskem to a C grade and S&P pushed it into default territory, both on Monday. —The trigger. Fitch said the company’s own court shield against creditors looks like a process with the marks of a default. —The twist. The shares climbed almost six percent the same day, leading the São Paulo index. —The stakes. Braskem told a court that paying one July bill could trigger early-payment clauses on roughly fifty-four billion reais of debt. —The cash.
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