/raid1/www/Hosts/bankrupt/TCRLA_Public/211015.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Friday, October 15, 2021, Vol. 22, No. 201

                           Headlines



B E R M U D A

WEATHERFORD INT'L: Moody's Rates New $1.5BB Unsecured Notes 'B3'


B R A Z I L

AURA MINERALS: S&P Assigns 'B+' ICR, Outlook Stable
BRAZIL: Exports Grew Below Global Average in Volume Terms in Q2
JBS SA: Must Reinstate Indigenous Workers in Brazil Plant
SAMARCO MINERACAO: Court Extends Stay Period for 180 Days


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Leader In No Rush to Raise Taxes


M E X I C O

BRASKEM IDESA: Fitch Rates USD1-Bil. Secured Notes Due 2032 'B+'
BRASKEM IDESA: S&P Gives 'B+' Rating on New Secured Notes Due 2032
MEXICO: Prices Are Gaining at 'Phenomenal' Pace, Heath Says

                           - - - - -


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B E R M U D A
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WEATHERFORD INT'L: Moody's Rates New $1.5BB Unsecured Notes 'B3'
----------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Weatherford
International Ltd. (Bermuda)'s (Weatherford, a Bermuda incorporated
company) proposed $1.5 billion senior unsecured notes due 2030.
Moody's concurrently revised the company's rating outlook to stable
from negative and affirmed all other ratings, including
Weatherford's B2 Corporate Family Rating, B2-PD Probability of
Default Rating, B3 senior unsecured notes, and Ba3 rating on the
secured letters of credit (LC) facility and the secured notes.

Net proceeds from the proposed debt offering along with balance
sheet cash will be used to redeem roughly $1.5 billion of the
company's existing 11% unsecured notes due 2024 through a tender
offer process that was launched concurrently with the notes
offering.

"The stable outlook reflects Weatherford's reduced refinancing risk
and gradually improving operating environment," said Sajjad Alam,
Moody's Vice President.

Assignments:

Issuer: Weatherford International Ltd. (Bermuda)

Gtd. Senior Unsecured Regular Bond/Debenture, Assigned B3 (LGD4)

Affirmations:

Issuer: Weatherford International Ltd. (Bermuda)

Corporate Family Rating, Affirmed B2

Probability of Default Rating, Affirmed B2-PD

Gtd. Senior Senior Secured First Lien Letter of Credit Facility,
Affirmed Ba3 (LGD2)

Gtd. Senior Secured Regular Bond/Debenture, Affirmed Ba3 (LGD2)

Gtd. Senior Unsecured Regular Bond/Debenture, Affirmed B3 (LGD4)

Outlook Actions:

Issuer: Weatherford International Ltd. (Bermuda)

Outlook, Changed To Stable From Negative

RATINGS RATIONALE

The new notes will be issued by Weatherford International Ltd.
(Bermuda) and rank pari passu with the company's existing 2024
unsecured notes. The new and existing notes are rated B3, one notch
below the B2 Corporate Family Rating because of the significant
amount of priority-claim secured debt in Weatherford's capital
structure. Weatherford's LC facility and 2028 notes have a secured
first-lien claim to the company's assets. The recently issued 2028
secured notes and the proposed unsecured notes have the same
guarantors, including Weatherford International plc, the ultimate
parent company, and Weatherford International LLC, which owns
Weatherford's US subsidiaries.

Weatherford's B2 CFR reflects its high financial leverage, weak
interest coverage, execution risk surrounding ongoing business
transformation, and highly competitive operating environment. While
pricing and demand for oilfield services has improved in 2021,
further stabilization in industry conditions is needed to sustain
healthy margins and meaningfully reduce financial leverage. The CFR
is supported by Weatherford's large scale, diversified, and leading
market position in several product categories; broad geographic and
customer diversification with a substantial portion of revenue
coming from less volatile international markets; and numerous
patented products and technologies that are well-known and widely
used in the oilfield services industry giving the company some
competitive advantage.

Weatherford's SGL-2 rating reflects good liquidity through 2022.
The company will have roughly $800 million of pro forma
unrestricted cash according to Moody's estimates following the
proposed refinancing transaction and the previously announced $200
million senior unsecured notes redemption. Moody's expects the
company to generate breakeven to slightly positive free cash flow
going forward through 2022 assuming oilfield services industry
recovery continues. Weatherford's maturity profile will improve
significantly after these transactions with the closest maturity
now being the LC facility maturing in May 2024, and the remaining
$400 million 11% notes maturing in December 2024.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The CFR could be upgraded if Weatherford continues to make progress
on its restructuring initiatives, reduces financial leverage below
4x, and sustains interest coverage above 2x in an improving
industry environment. The CFR could be downgraded if leverage
cannot be sustained below 6x, the company generates recurring
negative free cash flow, or the unrestricted cash balance dwindles
below $400 million.

Weatherford International Ltd. (Bermuda) is a wholly-owned
subsidiary of Weatherford International plc, which is incorporated
in Ireland, and is a diversified international company that
provides a wide range of services and equipment to the global oil
and gas industry.

The principal methodology used in these ratings was Oilfield
Services published in August 2021.




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B R A Z I L
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AURA MINERALS: S&P Assigns 'B+' ICR, Outlook Stable
---------------------------------------------------
S&P Global Ratings assigned its 'B+' global scale and 'brAA'
national scale issuer credit ratings to British Virgin
Islands-based gold mining company Aura Minerals Inc. (Aura). At the
same time, S&P assigned a 'brAA' issue-level rating to the R$400
million debenture issued by Aura Almas Mineracao S.A.

The stable outlook reflects S&P's view that Aura will continue to
reduce cash costs as it develops the Almas and Matupa projects in
the next few years, with increasing volumes and supportive metals
prices keeping gross leverage below 1.0x.

Aura is a midtier mining company that operates four gold mines in
Brazil, the U.S., Honduras, and Mexico--the latter also produces
copper. However, the bulk of revenues are concentrated in gold
(about three quarters) and it's smaller compared to peers such as
Eldorado Gold Corp. (B+/Stable/--) and Iamgold Corp.
(B+/Stable/--). S&P said, "Aura had a total output of 204,000 GEOs
(gold equivalent ounces) in 2020 which we forecast to grow to
260,000-270,000 GEOs in 2021. Although we predict volumes to reach
400,000 GEOs by 2025 due to current investments, the company
remains exposed to the volatility of commodity prices (especially
gold) and to operating issues such as social conflicts, project
delays, or weather hazards that could hamper production." A longer
track record of operating performance would be key for a potential
higher rating, together with larger volumes.

Aura is investing to ramp up its U.S. operations, which currently
drag down the company's average cash cost to close to $800 per
ounce; in the lower range of the third quartile of the cost curve.
S&P said, "As it improves the efficiency of current mines and
develops new lower-cost and high ore grade projects in
Brazil--Almas and Matupa--in the next three to four years, the
company's cash cost could reach the second quartile. Higher output
and efficiency and higher copper prices should offset the declining
gold prices according to our gold price deck of $1,600 per ounce in
2022 and $1,400 per ounce afterward."

Higher metals prices and output in the past few quarters have
significantly boosted EBITDA, which coupled with Aura's IPO in
Brazil in 2020, has resulted in very low gross leverage. S&P will
monitor the management's approach toward investments and payouts
(such as the extraordinary dividend distribution of $60 million in
the second quarter of 2021) to assess a potential change in Aura's
financial risk profile. This would also depend on its ability to
generate free operating cash flow (FOCF) of $40 million-$50 million
yearly even with gold prices declining $100 to $200 per ounce.

Aura has issued a R$400 million (about $77 million) debenture in
its Brazilian subsidiary to fund the development of Almas and
Matupa projects, as well as prepay some bilateral debt. This
further extends average debt maturities, which with its solid cash
position provides a liquidity cushion against the industry's
potential volatility.


BRAZIL: Exports Grew Below Global Average in Volume Terms in Q2
---------------------------------------------------------------
Richard Mann at Rio Times Online reports that the performance of
Brazilian exports is good but is still below the global average in
volume, which considers price, exchange rate, etc.

Data from the World Trade Organization (WTO) show that Brazilian
exports in volume increased 16% in the second quarter of this year
compared to the same period last year.

The overall increase in exports was 23%. The USA's shipments grew
29% in the period; the European Union, 28%; China, 21%; and Japan,
32%.

Brazilian imports in volume increased 26%, more than the world
average of 22%. Brazilian purchases in the period were also higher
than those of the USA and EU, up 24%, and of China, up 15%.

                           About Brazil

Brazil is the fifth largest country in the world and third largest
in the Americas.  Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.

Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020).  Fitch's 'BB-' Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) has been affirmed
in May 2021.  Standard & Poor's credit rating for Brazil stands at
BB- with stable outlook (April 2020).  S&P's 'BB-/B' long-and
short-term foreign and local currency sovereign credit ratings for
Brazil were affirmed in December 2020.  Moody's credit rating for
Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's
credit rating for Brazil is BB (low) with stable outlook (March
2018).


JBS SA: Must Reinstate Indigenous Workers in Brazil Plant
---------------------------------------------------------
thepigsite.com reports that a labor court in Santa Catarina has
confirmed an injunction ordering JBS SA, the world's largest
meatpacker, to reinstate about 40 indigenous people dismissed after
May 2020, as the COVID-19 pandemic started to ravage meat plants in
Brazil.

The court also ruled that JBS should pay individual and collective
damages to the workers involved in the suit, according to a
decision dated October 4 seen by Reuters, according to
thepigsite.com.

In an emailed response to Reuters, JBS said it does not comment on
ongoing cases.

Meatpacker JBS was sued for alleged violation of indigenous
workers' rights after firing about 40 members of the Kaingang tribe
from a plant in southern Brazil, the report notes.

The suit filed in June 2020 by the labor prosecutor's office
alleged that JBS discriminated against these workers as the novel
coronavirus pandemic escalated in the country, the report relays.

In his October 4 decision, Labor Judge Adilton Detoni ordered JBS
to pay individual damages of 10 times the salaries of each of the
laid off workers, based on the value of their contracts at the time
of the mass dismissals, the report discloses.

Detoni also ordered payment of collective damages equal to 50% of
the total sum of the individual damages, according to the ruling,
the report notes.

JBS refuted discrimination claims.

When the workers were fired from JBS's Seara meat plant in Santa
Catarina, the company said they were paid their full rights, the
report discloses.

The company also noted the workers fired in May of 2020 traveled
300 kilometers (186.4 miles) every day to get to the plant on
transportation arranged by the company, the report says.

JBS said at the time the workers were let go after the company
discontinued that bus service, the report adds.

As reported in the Troubled Company Reporter-Latin America in
August 2021, S&P Global Ratings revised the global scale outlook on
JBS S.A. (JBS) and its fully owned subsidiary JBS USA Lux S.A. (JBS
USA) to positive from stable and affirmed its 'BB+' issuer credit
rating. The recovery expectations remain unchanged, and S&P
affirmed the 'BB+' ratings on the senior unsecured notes and the
'BBB' ratings on the secured term loans.


SAMARCO MINERACAO: Court Extends Stay Period for 180 Days
---------------------------------------------------------
Mariana Durao, writing for Bloomberg News, reports that Samarco
Mineracao SA's stay period -- in which creditors are blocked from
seizing assets or taking legal action to collect on the debt they
hold -- will be extended for 180 days, the judge overseeing the
company's bankruptcy ruled.

The company filed for bankruptcy protection in April 2021.  The new
deadline starts Oct. 10, 2021, according to a public filing.

If creditor protection hadn't been extended, it would have resulted
in huge losses for the company, compromising its cash flow, the
judge said.

                  About Samarco Mineracao SA

Samarco Mineracao SA is a Brazilian mining joint venture between
BHP Group and Vale SA. erves as an iron ore processing company. The
company provides blast furnace, direct reduction, sinter feed, as
well as low and normal silica content pellets.

On April 9, 2021, the Debtor filed a voluntary petition for
judicial reorganization in the 2nd Business State Court for the
Belo Horizonte District of Minas Gerais in Brazil pursuant to
Brazilian Federal Law No. 11,101 of February 9, 2005.

Samarco Mineracao filed for Chapter 15 bankruptcy recognition
(Bankr. S.D.N.Y. Case No. 21-10754) on April 19, 2021, in New York,
to seek U.S. recognition of its Brazilian proceedings.

The Debtor's U.S. counsel is Thomas S. Kessler of Cleary Gottlieb
Steen & Hamilton LLP.




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Leader In No Rush to Raise Taxes
----------------------------------------------------
Dominican Today reports that the beginning of the talks between
Dominican President, Luis Abinader, with different sectors
represented in the National Dialogue to discuss the issue of tax
reform, has yet to be set, despite the announcement by the
Government in the last meeting of his cabinet.

The Administrative Minister of the Presidency, Jose Ignacio Paliza,
said that we must wait for the Government through the corresponding
mechanisms to report on the meetings, according to Dominican
Today.

"Let us consistently hope that the Dominican government, through
the corresponding channels, can discuss and initiate those
conversations. It has not done so while waiting for the document
that, although it has been circulating for a long time, is not an
official document," Paliza said when asked about the course of the
proposed tax reform, the report notes.

On October 13, the Association of Industries of the Dominican
Republic (AIRD) said through a statement that it is aware that the
country's tax system requires updating, but cannot be rushed, the
report adds.

                      About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. Luis Rodolfo
Abinader Corona is the current president of the nation.

The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Fitch Ratings on Jan. 18, 2021, assigned a 'BB-' rating to
Dominican Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.

Standard & Poor's, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings. The negative
outlook reflects S&P's view that it could lower the ratings on the
Dominican Republic over the next six to 18 months, given the
severe impact of the COVID-19 pandemic on the sovereign's already
vulnerable fiscal and external profiles, as well as the potential
for a weaker-than-expected economic recovery.

Moody's credit rating for Dominican Republic was last set at Ba3
with stable outlook (July 2017). Fitch's credit rating for
Dominican Republic was last reported at BB- with negative outlook
(May 8, 2020).




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BRASKEM IDESA: Fitch Rates USD1-Bil. Secured Notes Due 2032 'B+'
----------------------------------------------------------------
Fitch Ratings has assigned a 'B+'/'RR4' rating to the proposed
sustainability-linked senior secured notes of approximately USD1
billion due 2032 to Braskem Idesa SAPI (BI). The notes are on
Rating Watch Positive (RWP). The notes will rank pari passu with
all of BI's present and future senior debt obligations (including
2029 notes and in case of the occurrence of a loan repayment event,
the new credit facility) that are secured with the notes'
collateral. Proceeds would be used together with the proceeds from
a potential new credit facility to repay the existing senior
secured project finance debt. Fitch rates BI's Long-Term Foreign
and Local Currency Issuer Default Ratings 'B+'/RWP.

The RWP reflects the decrease in BI's business risks following the
announcement that it has signed an amendment to the ethane supply
agreement with Petroleos Mexicanos (PEMEX; BB-/Stable). The
amendment terms reduce uncertainties regarding business
sustainability and profitability, which should remain strong
throughout the petrochemical cycle. It is also expected to benefit
financial flexibility as it should allow the company to change its
project finance debt for corporate debt.

KEY RATING DRIVERS

Amendment to Ethane Contract Agreement: PEMEX is expected to
deliver a minimum of 30kbpd of ethane, a decrease from 66kpd, per
the amendment contract until the earliest of the operational
startup of the ethane import terminal, scheduled for the second
semester of 2024, or February 2025. There is also an agreement that
establishes support measures to help the company build an ethane
import terminal with the capacity to meet all of BI's feedstock
requirements. Fitch's base case considers around USD360 million of
capex related to the terminal, to be disbursed between 2022 and
2024. BI has expressed its interest to find operational partners to
develop this project.

Improved Business Risk: The amendment significantly reduces most
immediate political and operational risks, as observed during 4Q20
when BI stopped its operations for 29 days due to lack of natural
gas and political disputes. Pemex provides BI with ethane and
Cenagas, another governmental company provides the transportation
of natural gas used by BI as fuel and to generate electrical
energy. Fitch's base case scenario indicates that Pemex's supply of
ethane should decline to 45% of total needs in 2022 and to 38% in
2026. Until 2020, when BI implemented the fast track project to
import ethane, the company was dependent solely on Pemex. As of
today, the fast track has a capacity to import up to 25 kpbd,
representing around 40% of Braskem Idesa's ethane needs.

Profitability to Remain Sound: Despite increases in feedstock costs
that will result from this agreement, BI will continue to remain
extremely profitable due to its large scale and modern facilities.
EBITDA margins are projected to be around 35%-40% in Fitch's base
case scenario that assumes PEMEX delivers about 30k bpd and that
the pricing structure is revised to consider market price
references plus logistics costs. These margins compare favorably
with margins of peers of between 20% and 25% during high periods in
the cycle.

Favorable Backdrop: The combination of weather-related production
disruptions, logistic constrains and strong demand for resins has
resulted in strong petrochemical spreads for 2021. BI is expected
to post record results despite operating rates of around 65%.
Fitch's base case EBITDA is around USD610 million for 2021. For
2022 and 2023, Fitch assumes greater pressure on raw material costs
and mid-cycle price assumptions leading to EBITDA of around USD475
million and USD410 million, respectively.

New Terminal Capex Could Pressure FCF: On a preliminary exercise,
considering the terminal being 100% owned by BI, FCF is expected to
remain negative by USD60 million, USD80 million and USD17 million,
respectively, in the next three years. Fitch incorporates around
USD40 million of shareholder loans to be distributed in 2022 and
2023. BI expects to find a partner and financing for the project
(60/40 debt/equity ratio), which could alleviate this pressure on
FCF.

Leverage to Peak in 2023: The scenario of strong petrochemical
spreads during 2021 and higher production volume in 2022 are
benefiting BI's deleveraging. Fitch expects the net leverage ratio
to be around 3.0x in 2021 and 4.1x in 2022. For 2023, net leverage
is around 4.9x, considering mid-cycle prices plus capex for the
ethane terminal. These leverage levels compare well with 7.4x in
2020 and 6.0x in 2019.

Financial Flexibility to Improve: The new secured bond issuance
plus a potential new credit facility would increase BI's financial
flexibility, as it would allow the company to repays its
restrictive project finance debt. The project finance debt counts
has annual average amortizations of USD160 million through 2029.
The proposed new credit facility is a five-year, senior secured,
syndicated term loan of up to USD600 million with a pool of banks.
Fitch expects BI to pursue a proactive approach in terms of debt
refinancing in order to minimize short and medium term debt, which
will help it navigate the cyclical petrochemical industry and
implements its capex plan for its ethane import terminal.

Moderate Rating Linkage: Braskem Idesa benefits from operational
and commercial synergies with its controlling shareholder Braskem
S.A. (75% equity interests, IDR BB+/Positive) within the production
and sale of polyethylene (PE). Braskem Idesa is strategically
important for Braskem as Braskem Idesa diversifies Braskem's
feedstock sources and increases its access to other markets. Legal
ties are weak, as the parent does not guarantee the debt
obligations of the subsidiary. Braskem Idesa's project finance debt
has a strong set of covenants that limits financial flexibility and
dividends distributions.

Corporate Governance and Group Structure Score of '4': Braskem
Idesa's governance structure related to its shareholder
concentration, track record of corruption in of one of its parent
company and below average financial disclosure are also
incorporated into the ratings.

DERIVATION SUMMARY

Braskem Idesa's current ratings reflects risks associated with the
political risk exposure with Mexican entities, recent track record
of shutdown of facilities and its ongoing disputes with PEMEX on
the amendment ethane contract.

Historically, Braskem Idesa benefited from access to a competitive
cost feedstock, with its EBITDA margin well positioned relative to
other PE producers such as Braskem S.A. (BB+/Positive) and more
diversified players such as Dow Chemical Company (BBB/Stable) in
terms of operating margins. Braskem Idesa compares positively with
its Latin American chemical peers such as Alpek S.A (BBB-/Stable)
or Orbia Advance Corporation, S.A.B de C.V. (BBB/Stable).
Nevertheless, Braskem Idesa has a higher exposure to
supply/contract risks compared to its peers. The company also has a
weaker position in terms of exposure to a single asset and product,
as well as limited geographic diversification. Braskem Idesa's net
leverage ratio is expected to be above most of its peers in the
region, with net leverage ratio around 3.5x-4.0x through the cycle.
The average net leverage for the Latin American investment-grade
chemicals peers is around 2.5x and 3.5x for solid 'BB' peers.

KEY ASSUMPTIONS

-- PEMEX providing 30kbpd of ethane and imported ethane around
    13kbpd in 2021 and 30kbpd in 2022 and 2023;

-- Industry PE-Ethane's spreads of around USD1,468/t, USD982/t
    and USD967/t for 2021, 2022 and 2023, respectively;

-- Operating capex of around USD30million in the next three
    years, and terminal capex of around USD360 million to be
    invested in the next three years;

-- Shareholder distributions around USD40 million per year in
    2021-2023.

Recovery Ratings Assumptions

The recovery analysis assumes that Braskem Idesa would be
considered a going concern in bankruptcy and that the company would
be reorganized rather than liquidated. Fitch has assumed a 10%
administrative claim.

Going-Concern Approach

The going-concern EBITDA is USD350 million to reflect a mid-cycle
analysis and the volatility in the petrochemical industry's volume
and prices. The enterprise valuation/EBITDA multiple applied is 5x,
reflecting Braskem Idesa's modern asset base and strong market
share in Mexico.

Fitch applies a waterfall analysis to the post-default enterprise
value based on the relative claims of the debt in the capital
structure. Fitch's debt waterfall assumptions take into account the
company's total debt at June 30, 2021. These assumptions result in
a recovery rate for the secured bonds within the 'RR3' range, but
due to the soft cap of Mexico at 'RR4' Braskem Idesa's senior
secured notes are rated 'B+'/'RR4'.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- Approval of the agreement by BI's shareholders and creditors;

-- Successful refinancing of the project finance debt;

-- Sustained capacity utilization levels of around 80%-85%.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Failure to proceed with the approval of the amendment supply
    agreement contract;

-- Pemex's failure to deliver above 25kbpd, pressuring overall
    business profitability;

-- Net debt/EBITDA above 5.0x on consistent basis.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity Including Additional Reserves: As of June 30,
2021, Braskem Idesa reported USD197 million of cash, USD145 million
of short-term debt and USD2.3 billion of long-term debt obligations
(USD1.4 billion of project finance debt and USD900 million of
secured bonds due to 2029). The company also has a debt service
reserve account of USD194 million and access to a contingent equity
line of USD208 million. As of Dec. 31, 2020, Braskem Idesa reported
MXN47 billion of subordinated shareholder loans, MXN35 billion with
Braskem and MXN12 billion with Grupo IDESA. In case the project
finance debt is fully repaid, the contingent equity that was
provided by Braskem S.A. can be removed.

Sustainability-linked Bond: The sustainability-liked securities
framework establishes a goal of reducing absolute GHG emission
Scope 1 and 2 by 15% from a 2017 baseline by year-end 2028 from
1,854 ktCO2e to 1,548 ktCO2e. Scope 1 refers to emissions from
fixed and mobile fuel combustion gases (CO2, CH4, N2O, HFC), and
Scope 2 the emissions from the use of electricity (CO2, CH4, N2O,
HFC). If BI fails to meet the targets and conditions there could be
an interest step up of 37.5 basis points.

ISSUER PROFILE

Braskem Idesa was created in May 2010 to develop the petrochemical
complex in Veracruz (Mexico) - Etileno XXI Project, which started
operation in 2Q16. The complex houses an ethane gas-based ethylene
cracker and three polyethylene (PE) plants - two high-density
(705kton) and one low-density (300kton) - with combined annual
production capacity of 1.05 million ktons of PE.

ESG CONSIDERATIONS

Braskem Idesa has an ESG Relevance Score of '4' for governance
structure due to shareholder concentration and track record of
corruption scandal of one of its parent company. This has a
negative impact on the credit profile and is relevant to the rating
in conjunction with other factors.

Braskem Idesa has an ESG Relevance Score of '4' for financial
transparency with below average financial disclosure. This has a
negative impact on the credit profile and is relevant to the rating
in conjunction with other factors.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.


BRASKEM IDESA: S&P Gives 'B+' Rating on New Secured Notes Due 2032
------------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating to Braskem
Idesa S.A.P.I.'s (B+/Stable/--) proposed senior secured notes for
up to $1 billion due 2032. At the same time, S&P assigned a
recovery rating of '3' on the proposed notes, in line with the
recovery rating on the existing senior secured notes due 2029,
indicating its expectation of a meaningful recovery (50%-90%) for
lenders in the event of a default. The proposed notes will have a
10-year bullet tenor and will bear a fixed-rate interest. The
company plans to use the net proceeds to refinance existing bank
debt, which is the outstanding project finance loan due 2029.

The proposed notes will also benefit from a collateral package of
asset guarantees that currently supports the company's project
finance debt and the $900 million senior secured notes due 2029,
and will rank pari passu in right of payment with the company's
existing and future senior secured debt.

Following the issuance, Braskem Idesa's debt structure will consist
of the proposed senior secured notes of up to $1 billion due 2032,
$900 million senior secured notes due 2029, and a remaining portion
of the outstanding project finance loan due 2029 (if any). In S&P's
view, the proposed issuance will extend Braskem Idesa's debt
maturity profile to an average term of about 9 years from about 5
as of June 2021.

S&P said, "We view the transaction as debt neutral, given that the
issuance won't increase debt in Braskem Idesa's capital structure.
We still expect the company to manage its liquidity prudently, and
continue improving its credit metrics through higher revenue and
EBTIDA in the next 12 months, thanks to the recovery of polyethylen
prices and consistent volume production across the company's plant.
Given our expectations of stable debt levels, solid polyethylene
demand, and favorable prices that should raise Braskem Idesa's
EBITDA, we continue expecting debt to EBITDA of about 2.9x by the
end of 2021."

  Ratings List

  NEW RATING

  BRASKEM IDESA, S.A.P.I.

  Senior Secured            B+
   Recovery Rating          3


MEXICO: Prices Are Gaining at 'Phenomenal' Pace, Heath Says
-----------------------------------------------------------
Maya Averbuch at Reuters reports that Mexico's consumer prices are
rising at a phenomenal pace and might not peak until the end of
2021 or early 2022, requiring an appropriate response by policy
makers, central bank deputy Governor Jonathan Heath said.

Both internal and external supply shocks have led to an upward
inflation trend, leaving no room for expansive monetary policy,
Heath, one of the five Banco de Mexico board members, said on a
Grupo Financiero Banorte podcast, according to Reuters.

"It's easy to see that prices are increasing, and they're being
transferred to consumer prices at a pace that's really phenomenal,"
he said, the report notes.

The central bank has hiked its key interest rate a quarter point at
each of its last three meetings, generating expectations that
borrowing costs will hit 5.25% by year-end from the current 4.75%,
according to economists surveyed by Citigroup Inc.'s local
Citibanamex unit, the report relays.  Banxico is one of many
central banks across Latin America that are tightening monetary
policy in response to quickening inflation, as economies open back
up, the report discloses.

Though many of the supply shocks are external, domestic factors,
such as flooding, climate change, and blockades along train lines,
have also contributed to the price shifts, Heath said, the report
notes.  The central bank's concern that increases in one sector of
the economy would pressure prices higher elsewhere has already been
observed, he added.

"If we look at core inflation, we can reach the conclusion that
these increases are already generalized," Heath said.

On the podcast, Heath projected that Mexico's economy would not
return to pre-pandemic peak levels until the end of 2022.

The report discloses that Mexico's annual inflation accelerated to
6%, double its target, in September while annual core inflation,
which excludes volatile items such as fuel, reached 4.92%.  Banxico
targets inflation at 3%, plus or minus 1 percentage point, the
report relays.  The headline rate has been over 3% since June 2020
while core prices were last at target in 2016, the report says.

"If inflation remains at levels above 4% for more than two years,
well that isn't so temporary, and there's an inflationary inertia
that's really worrying and we need to make sure we're responding
correctly," Heath said, the report notes.

The bank has been split in its three recent meetings, with Heath
and three other members voting in favor of the most recent rate
increase, which brought the rate to 4.75%. Deputy Governor Gerardo
Esquivel voted against the decision, the report discloses.  The
board will meet twice more in 2021 to decide on rates, in November
and then again in December, the report adds.



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S U B S C R I P T I O N   I N F O R M A T I O N

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