Hexion Inc. has improved its operating performance and cash flow generation through various margin improvement measures despite continued softness in demand across key end markets. We expect positive earnings momentum will continue in 2025. Therefore, we revised our outlook on Hexion to stable from negative. We affirmed our 'B-' issuer credit rating. We also affirmed our 'B-' issue-level rating on the company's first-lien senior secured debt. Our '3' recovery rating is unchanged. We also affirmed our 'CCC+' rating on the second-lien senior secured debt. Our '5' recovery rating is unchanged. The stable outlook reflects our expectations that Hexion's credit metrics will remain appropriate for the current rating for the next 12 months with continued improvement in profitability and liquidity. We
