Key Facts

—The cut. Fitch lowered Braskem to a C grade and S&P pushed it into default territory, both on Monday.

—The trigger. Fitch said the company’s own court shield against creditors looks like a process with the marks of a default.

—The twist. The shares climbed almost six percent the same day, leading the São Paulo index.

—The stakes. Braskem told a court that paying one July bill could trigger early-payment clauses on roughly fifty-four billion reais of debt.