Fitch: Search for Competitiveness Remains Key for Latin American Chemicals

RIO DE JANEIRO--()--Fitch Ratings' outlook for Latin America chemicals is stable for 2015. Fitch expects limited to no downgrades for the sector during 2015.

Market fundamentals are expected to be flat in 2015. A sustained downturn in oil and oil derivatives prices would benefit Braskem S.A.'s (Braskem) high-cost position and reduce the relative advantage of issuers with high gearing to ethane feedstocks, such as Grupo IDESA S.A. de C.V. (IDESA). On average, issuers have solid financial profiles, robust liquidity and extended maturity profiles.

Latin American chemical producers have worked on several expansion projects seeking to take advantage of low-cost feedstock in North America. Nevertheless, Fitch does not expect any benefit during 2015, as those projects are still in early stages or about to enter in a run-up curve.

The full report '2015 Outlook: Latin American Chemicals - Search for Competitiveness Remains Key' is available at 'www.fitchratings.com.'

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: 2015 Outlook: Latin American Chemicals (Search for Competitiveness Remains Key)
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Contacts

Fitch Ratings
Debora Jalles, +55 21 4503-2629
debora.jalles@fitchratings.com
or
Gilberto Gonzalez, CFA, +52 81 8399-9100
gilberto.gonzalez@fitchratings.com
or
Alberto Moreno, +52 81 8399-9100
alberto.moreno@fitchratings.com
or
Media Relations, New York
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Debora Jalles, +55 21 4503-2629
debora.jalles@fitchratings.com
or
Gilberto Gonzalez, CFA, +52 81 8399-9100
gilberto.gonzalez@fitchratings.com
or
Alberto Moreno, +52 81 8399-9100
alberto.moreno@fitchratings.com
or
Media Relations, New York
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com