Braskem rating cuts and 60‑day court shield amid $9.4 bn debt fight

Brazilian petrochemical giant Braskem saw its credit ratings slashed by Fitch and S&P Global after a São Paulo court ordered a 60‑day protective shield on June 26. The court ruling freezes creditor seizures and lawsuits while the company renegotiates its roughly $9.4 billion debt pile, built up from a prolonged plastics‑price slump and a costly mining disaster in Maceió. Fitch lowered the issuer rating from "CC" to "C" and S&P signaled a similar downgrade, citing the court decision as an indication of possible default. The downgrade triggered a sell‑off, with Braskem shares dropping about 5.75% on Brazil’s B3 exchange.

The court shield applies only to financial creditors—banks and bondholders—leaving suppliers, staff and customers unaffected. Braskem, co‑owned by private‑equity firm IG4 Capital and state oil company Petrobras, faces missed interest payments of $141 million due in July and $36 million in August. Distressed‑debt investors Elliott and Strategic Value Partners have entered the creditor side, while Petrobras is not expected to inject fresh capital. The 60‑day pause gives Braskem time to seek a restructuring plan that would extend repayment terms without forcing losses or equity swaps.