Research Update: Momentive Performance Materials Inc. Outlook Revised To Positive On Strengthening Credit Metrics; Operating Improvement

Momentive Performance Materials Inc.'s (MPM) credit metrics have improved substantially in 2021 with earnings growth supported by more beneficial pricing, as well as strong silicone demand in electronics, health care, industrial, and tire applications. Additionally, MPM continues to make progress on restructuring initiatives designed to increase profitability, reduce the cyclicality of its business, and shift the company away from commodity type products toward specialty silicones. As a result of improving credit metrics, and strong operating performance, S&P Global Ratings affirmed its 'B+' issuer-credit rating on the company and revised its outlook on MPM to positive from stable. We also affirmed our 'B+' issue-level rating on the company's first-lien term loan. Our recovery rating remains '3', indicating our expectation of meaningful

...- Momentive Performance Materials Inc.'s (MPM) credit metrics have improved substantially in 2021 with earnings growth supported by more beneficial pricing, as well as strong silicone demand in electronics, health care, industrial, and tire applications. - Additionally, MPM continues to make progress on restructuring initiatives designed to increase profitability, reduce the cyclicality of its business, and shift the company away from commodity type products toward specialty silicones. - As a result of improving credit metrics, and strong operating performance, S&P Global Ratings affirmed its 'B+' issuer-credit rating on the company and revised its outlook on MPM to positive from stable. - We also affirmed our 'B+' issue-level rating on the company's first-lien term loan. Our recovery rating remains '3', indicating our expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. - The positive outlook reflects our view of the company's improved...

Research Update