Hexion Inc. Outlook Revised To Negative From Stable On Weak Performance; 'B-' Rating And Debt Ratings Affirmed

Hexion Inc.'s weaker than expected operating performance in a challenging macroeconomic environment and weak end-market demand has impaired leverage and cash flow more than we anticipated. We expect weakness to persist into 2024, increasing the likelihood of metrics deteriorating more. Therefore, we revised our outlook on Hexion to negative from stable. We affirmed our 'B-' issuer credit rating. We also affirmed our 'B-' issue-level rating on the company's first-lien senior secured term loan. Our '3' recovery rating is unchanged. We also affirmed our 'CCC+' rating on the second-lien senior secured term loan. Our '5' recovery rating is unchanged. The negative outlook reflects leverage being weaker than prior expectations because of a challenging operating environment, which we expect to persist in

...December 6, 2023 - Hexion Inc.'s weaker than expected operating performance in a challenging macroeconomic environment and weak end-market demand has impaired leverage and cash flow more than we anticipated. We expect weakness to persist into 2024, increasing the likelihood of metrics deteriorating more. - Therefore, we revised our outlook on Hexion to negative from stable. We affirmed our 'B-' issuer credit rating. - We also affirmed our 'B-' issue-level rating on the company's first-lien senior secured term loan. Our '3' recovery rating is unchanged. We also affirmed our '###+' rating on the second-lien senior secured term loan. Our '5' recovery rating is unchanged. - The negative outlook reflects leverage being weaker than prior expectations because of a challenging operating environment, which we expect to persist in 2024. TORONTO (S&P Global Ratings) Dec. 6, 2023--S&P Global Ratings today took the rating actions listed above. We expect Hexion's leverage to remain weaker than our previous...

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