World's second largest producer in the highly concentrated silicones market; Above chemical industry average operating profitability and good growth prospects for silicones; and Strong diversification by customers, products, and regions. Very high debt leverage; Modest deleveraging potential due to high capital intensity; and Low capital returns. The ratings on Wilton, Conn.-based silicones and quartz producer Momentive Performance Materials Inc. reflect its high leverage after the group's former owner, General Electric Co. (GE; AAA/Stable/A-1+), sold its silicones and quartz businesses to Apollo Management for $3.9 billion. Pro forma total debt was about $3.5 billion, adjusted to include tax-effected postretirement obligations, capitalized operating leases, and seller notes. Total adjusted debt to EBITDA was more than 7.5x. Standard&Poor's Ratings Services expects
