Hexion Inc. Assigned 'B-' Rating, Stable Outlook; Hexion Holdings Ratings Withdrawn

Hexion Inc.'s debt leverage has been elevated since the debt-funded acquisition of Hexion Holdings Corp. (parent entity) by a private equity firm in March 2022, coupled with pressures on cash flow and coverage metrics, which we project will be weaker than our previous expectations. In December 2022, Hexion Holdings Corp. merged with-and-into its wholly owned subsidiary Hexion Inc., with the latter being the surviving entity and consequently assuming all existing debt from the parent. Thus, we are assigning all ratings at the Hexion Inc. level. We assigned our 'B-' issuer credit rating with a stable outlook to Hexion Inc. We lowered our issue level rating on Hexion Holding Corp.'s $1.4 billion first lien senior secured term loan, which has been

...February 8, 2023 - Hexion Inc.'s debt leverage has been elevated since the debt-funded acquisition of Hexion Holdings Corp. (parent entity) by a private equity firm in March 2022, coupled with pressures on cash flow and coverage metrics, which we project will be weaker than our previous expectations. - In December 2022, Hexion Holdings Corp. merged with-and-into its wholly owned subsidiary Hexion Inc., with the latter being the surviving entity and consequently assuming all existing debt from the parent. Thus, we are assigning all ratings at the Hexion Inc. level. - We assigned our 'B-' issuer credit rating with a stable outlook to Hexion Inc. - We lowered our issue level rating on Hexion Holding Corp.'s $1.4 billion first lien senior secured term loan, which has been assumed by Hexion Inc., to 'B-' from 'B'. Our '3' recovery rating indicates our expectation of meaningful (50-70%; rounded estimate: 60%) recovery in the event of a payment default. - We lowered our issue level rating on Hexion...

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