Bulletin: Momentive Performance Materials Inc. Will Operate As Usual On Acquisition By Korean Investment Group

NEW YORK (S&P Global Ratings) Sept. 18, 2018--S&P Global Ratings today said that global silicones and advanced materials company Momentive Performance Materials Inc. (B/Stable/--) will continue to operate normally after it announced its $3.1 billion acquisition by a Korea-based investment group. The group consists of private equity sponsor SJL Partners, chemicals manufacturer KCC Corp. (BBB/CreditWatch Neg), and quartz manufacturer Wonik QnC Corp. Given the uncertainty surrounding future financial policies, capital structure, and ownership structure, we view the announcement as credit neutral for the time being and expect the company to operate as usual. We expect Momentive to continue to benefit from favorable end-market fundamentals in the global silicones industry, driven by increased demand and capacity reductions over the past two

...NEW YORK (S&P Global Ratings) Sept. 18, 2018--S&P Global Ratings today said that global silicones and advanced materials company Momentive Performance Materials Inc. (B/Stable/--) will continue to operate normally after it announced its $3.1 billion acquisition by a Korea-based investment group. The group consists of private equity sponsor SJL Partners, chemicals manufacturer KCC Corp. (###/CreditWatch Neg), and quartz manufacturer Wonik QnC Corp. Given the uncertainty surrounding future financial policies, capital structure, and ownership structure, we view the announcement as credit neutral for the time being and expect the company to operate as usual. We expect Momentive to continue to benefit from favorable end-market fundamentals in the global silicones industry, driven by increased demand and capacity reductions over the past two years. We also expect Momentive's increased silicon volume growth and improved product mix to lead to further improved profitability and modest revenue growth....

Bulletin