S&P Global Ratings downgraded Brazilian petrochemical producer Braskem to 'D' (default) from 'CCC-'.
A São Paulo court granted the company a 60-day injunction for protection from its creditors. This ruling suspends all interest and principal payments while Braskem enters debt mediation.
Braskem faces approximately $3.69 billion in debt service obligations through the end of 2027. The company owes $878 million in the third quarter of 2026 alone.
S&P classifies the court-granted relief as a standstill on financial obligations. The 60-day window allows the company to advance an out-of-court restructuring plan. Braskem shares slumped following the initial announcement of the mediation filing.