Momentive Performance Materials Inc. Upgraded To 'B+'; New Debt Rated; All Ratings Placed On CreditWatch Positive

Momentive Performance Materials Inc. has continued to improve earnings and profitability through a shift toward higher-margin specialty silicones and silanes. As part of the previously announced acquisition by a Korean Consortium, Momentive plans to issue a $300 million asset-based lending (ABL) facility, a new $839 million senior secured term loan B due 2024, and a new $839 million Korean bank loan that will be guaranteed by KCC Corp. (BBB/Watch Neg/--). Momentive plans to repay all existing debt as part of the transaction. S&P Global Ratings raised its issuer credit rating on Momentive to 'B+' from 'B' and placed the rating on CreditWatch with positive implications. At the same time, we raised the issue-level ratings on the company's first- and second-lien

...+ Momentive Performance Materials Inc. has continued to improve earnings and profitability through a shift toward higher-margin specialty silicones and silanes. + As part of the previously announced acquisition by a Korean Consortium, Momentive plans to issue a $300 million asset-based lending (ABL) facility, a new $839 million senior secured term loan B due 2024, and a new $839 million Korean bank loan that will be guaranteed by KCC Corp. (###/Watch Neg/--). Momentive plans to repay all existing debt as part of the transaction. + S&P Global Ratings raised its issuer credit rating on Momentive to 'B+' from 'B' and placed the rating on CreditWatch with positive implications. + At the same time, we raised the issue-level ratings on the company's first- and second-lien notes by one notch and placed the ratings on CreditWatch with positive implications. This reflects our view that Momentive will receive some level of group support from its pending acquisitions by an investor group that includes...

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