Hexion Inc.'s weaker than expected operating performance in a challenging macroeconomic environment and weak end-market demand has impaired leverage and cash flow more than we anticipated. We expect weakness to persist into 2024, increasing the likelihood of metrics deteriorating more. Therefore, we revised our outlook on Hexion to negative from stable. We affirmed our 'B-' issuer credit rating. We also affirmed our 'B-' issue-level rating on the company's first-lien senior secured term loan. Our '3' recovery rating is unchanged. We also affirmed our 'CCC+' rating on the second-lien senior secured term loan. Our '5' recovery rating is unchanged. The negative outlook reflects leverage being weaker than prior expectations because of a challenging operating environment, which we expect to persist in
