S&P raises Braskem-Idesa's rating after deal with Pemex
Reuters
Published Sep 30, 2021 06:44PM ET
Updated Sep 30, 2021 07:07PM ET
MEXICO CITY (Reuters) -Global ratings agency Standard & Poor's (S&P) said on Thursday it raised Braskem-Idesa's credit rating from "B" to "B+" citing better performance and deleveraging after the firm reached an ethane gas supply agreement with Mexican state oil company Pemex.
On Tuesday, Brazilian petrochemical firm Braskem said its Mexican subsidiary Braskem-Idesa had reached a new gas supply accord with Pemex to settle differences between the companies and build a $400 million ethane terminal.
The deal settles a long-running conflict between the companies, as Mexico's government weighed canceling the Pemex ethane supply contract with Braskem-Idesa last year due to its high costs.
The deal "lessened previous operational and financial concerns," S&P said in a statement on Thursday.
"Therefore, on September 30, 2021, S&P Global (NYSE:SPGI) Ratings raised its global scale issuer and issuer credit ratings to 'B+' from Braskem-Idesa's 'B'," S&P said.
Strong demand for products, along with favorable polyethylene price momentum, will continue over the next 12-18 months and support Braskem-Idesa's gross revenue growth and profitability, S&P added.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.