Research Update: Hexion Inc. Downgraded To 'CCC' On Increased Liquidity Risk; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: Hexion Inc. Downgraded To 'CCC' On Increased Liquidity Risk; Outlook Negative

Research Update: Hexion Inc. Downgraded To 'CCC' On Increased Liquidity Risk; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: Hexion Inc. Downgraded To 'CCC' On Increased Liquidity Risk; Outlook Negative
Published Jan 17, 2019
9 pages (3333 words) — Published Jan 17, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We believe Columbus, Ohio-based thermoset resin manufacturer and marketer Hexion Inc.'s asset-based lending (ABL) facility has become current (potentially due within one year), which has increased our assessment of liquidity risks the company faces. Despite an ongoing attempt to divest assets to help address $2.5 billion in debt due in 2020, the company has not yet announced any sales, heightening our perception of risks about its ability to address these approaching maturities. As a result, we lowered our issuer credit rating on Hexion to 'CCC' from 'CCC+.' At the same time, we lowered our issue rating on the company's senior debt to 'CCC' from 'CCC+'. The recovery rating remains '3', indicating our expectation of meaningful (50%-70%; rounded estimate 50%) recovery

  
Brief Excerpt:

...We believe Columbus, Ohio-based thermoset resin manufacturer and marketer Hexion Inc.'s asset-based lending (ABL) facility has become current (potentially due within one year), which has increased our assessment of liquidity risks the company faces. Despite an ongoing attempt to divest assets to help address $2.5 billion in debt due in 2020, the company has not yet announced any sales, heightening our perception of risks about its ability to address these approaching maturities. As a result, we lowered our issuer credit rating on Hexion to '###' from '###+.' At the same time, we lowered our issue rating on the company's senior debt to '###' from '###+'. The recovery rating remains '3', indicating our expectation of meaningful (50%-70%; rounded estimate 50%) recovery in the event of a default scenario. We also lowered our issue ratings on the rest of the company's debt to '###-' from '###'. The recovery rating remains '5', indicating our expectation of modest (10%-30%; rounded estimate 20%)...

  
Report Type:

Research Update

Ticker
HXN
Issuer
GICS
Diversified Chemicals (15101020)
Sector
Global Issuers, Structured Finance
Country
Region
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Hexion Inc. Downgraded To 'CCC' On Increased Liquidity Risk; Outlook Negative" Jan 17, 2019. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Hexion-Inc-Downgraded-To-CCC-On-Increased-Liquidity-Risk-Outlook-Negative-2154595>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Hexion Inc. Downgraded To 'CCC' On Increased Liquidity Risk; Outlook Negative Jan 17, 2019. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Hexion-Inc-Downgraded-To-CCC-On-Increased-Liquidity-Risk-Outlook-Negative-2154595>
  
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