The parent holding companies of U.S.-based chemical producers Momentive Performance Materials Inc. (MPM) and Momentive Specialty Chemicals Inc. (MSC)--formerly Hexion Specialty Chemicals Inc.--have merged. Based on MPM's improving operating performance and strengthening liquidity, we are raising our corporate credit rating on MPM to 'B-' from 'CCC+'. We are also raising our second lien, senior unsecured, and subordinated debt ratings on MPM by one notch to 'CCC' from 'CCC-'. Based on the corporate credit rating upgrade and our updated recovery analysis, we are raising our senior secured debt rating on MPM by two notches to 'B' from 'CCC+' and revising the recovery rating to '2' from '3'. We are assigning a 'CCC' senior unsecured debt rating and a recovery rating of
