Among the leading global producers in the highly concentrated silicones market, with good diversification by customers, products, and regions; and Relatively favorable long-term growth prospects for silicones. Very high debt leverage; Thin free cash flow could impede business reinvestment and harm long-term competitiveness; Business cyclicality; and Refinancing risk in 2012 at the latest. The ratings on Albany, N.Y.-based Momentive Performance Materials Inc. reflect its very high debt leverage and fair business risk profile. Momentive is a large producer of silicones used in a wide variety of applications and quartz used primarily in semiconductors. Beginning in the fourth quarter of 2008, the company's operating performance deteriorated sharply due to recessionary conditions and a big drop-off in customer orders across most businesses
