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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.
