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Andrew Brady
Head of Basic Industries at CreditSights
Andrew Brady is a senior executive at CreditSights, a financial research and analysis firm. He holds multiple leadership positions within the company, including:
- Head of U.S. Distressed
- Global Head of Basic Industries
- Global Head of Medical Products and Tobacco
Brady is based in Montgomery, New Jersey, and has been with CreditSights for over 15 years.12 During his tenure, he has developed considerable expertise in analyzing crossovers, fallen angels, distressed credits, and special situations.2
Professional Background
Before joining CreditSights, Brady worked at Marathon Asset Management, where he focused on high-yield credit bank loan and bond markets, including performing and distressed credits in both the U.S. and Europe.3
Areas of Expertise
Andrew Brady's areas of expertise include:
- U.S. distressed debt
- Basic industries
- Medical products
- Tobacco industry
- High-yield credit markets
- Bank loan and bond markets
His long-standing experience at CreditSights has allowed him to develop a deep understanding of various industries and financial instruments, making him a valuable asset to the company's leadership team.
Highlights
Braskem (Ba2/BBB-/BBB-) had its ratings dropped one notch by Moody’s to Ba2 and its outlook was moved from stable to negative. Even though the company canceled Moody’s rating last week due to cost-cutting, the agency continues to deliver an unsolicited rating.
It seems that Moody’s movement is consistent with our thinking, although we are a bit surprised the agency only moved to Ba2. Even with the agency’s apparent “Rate as you Reserve” attitude, we are a bit puzzled as to why the agency stopped at Ba2.
For more thoughts on the Moody's downgrade and the potential for S&P and Fitch to bring the multi-notch downgrade pain, please click on the link below.
https://lnkd.in/e-W33eH5
Braskem is having quite the time of it the last two weeks despite being an investment grade company (for now). The destabilization and imminent collapse of Mine 18 in the Alagoas region of Brazil has already caused a collapse in its stock and bond prices. Braskem has been dealing with the fallout of geological events in the Alagoas region since 2019 and it appears that more bad news is on the horizon. While Braskem has taken R$14.4 bn of reserves to date, government officials are estimating costs for the Alagoas liabilities could reach R$34 bn. It is now coming to light that the company's R$1.7 bn agreement with the Maceio municipal government may contain language that allows the parties to reopen the agreement. All the while, government officials at all levels of government are calling for Braskem to be held responsible for all damages. The latest is Brazilian president Lulu stating that all mine-related expenses must be paid for by the company. We have been underperform on the name and have kept our clients out of the ongoing price meltdown. However, the bonds are now trading over +600 bps to treasuries, which is higher than some Triple-C names. Investors should definitely put Braskem on their radar screen as a potential opportunity once all the dust settles. Please see the below links to research we have published on the name since Mid-November. If you are not a client, please inquire about a free trial.
Braskem: More Movements, More Money? https://lnkd.in/gHw5WSNR
Braskem: Cancels Moody's Rating https://lnkd.in/gCAa-Wau
Braskem: Alagoas Goes Assymmetric https://lnkd.in/gwvhZzWF
Braskem: 3Q23 Earnings Snapshot https://lnkd.in/gNuaZ2rp
