Momentive Performance Materials Inc. Upgraded to 'B' on Sustained Business and Financial Improvements; Outlook Stable

Momentive Performance Materials Inc. has continued to improve earnings and profitability through a shift toward higher-margin specialty silicones and silanes. In addition, Momentive has benefitted from favorable end-market fundamentals in the global silicones industry driven by increased demand and capacity reductions over the past two years. We are raising our corporate credit rating on Momentive Performance Materials to 'B' from 'B-' as a result of the company's improved profitability and credit metrics. At the same time, we are raising the issue-level ratings on Momentive's first-lien senior secured notes to 'B' from 'B-'. The recovery ratings remains '4'. We are also raising the issue-level ratings on Momentive's second-lien senior secured notes to 'B-' from 'CCC+'. The recovery rating remains '5'. The

...+ Momentive Performance Materials Inc. has continued to improve earnings and profitability through a shift toward higher-margin specialty silicones and silanes. In addition, Momentive has benefitted from favorable end-market fundamentals in the global silicones industry driven by increased demand and capacity reductions over the past two years. + We are raising our corporate credit rating on Momentive Performance Materials to 'B' from 'B-' as a result of the company's improved profitability and credit metrics. + At the same time, we are raising the issue-level ratings on Momentive's first-lien senior secured notes to 'B' from 'B-'. The recovery ratings remains '4'. We are also raising the issue-level ratings on Momentive's second-lien senior secured notes to 'B-' from '###+'. The recovery rating remains '5'. + The stable outlook reflects our view that Momentive will continue to show moderate improvement in profitability and credit measures over the next 12 months as the company benefits...

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