...- Following KCC Corp.'s (KCC; ##+/Stable/--) buyout of private equity sponsor SJL Partners LLC in May, Momentive Performance Materials Inc. (MPM) is now 100% owned by KCC, a building and construction materials company based in Korea. - Pursuant to the buyout, along with additional factors including $100 million of liquidity support provided by KCC via a shareholder loan, KCC's historical guarantee of MPM debt, and potential future assistance in the form of debt repayment, we now assess MPM's status within the KCC group as strategically important. - This revised assessment provides a three-notch ratings uplift above our stand-alone credit rating on MPM (compared with one notch previously). - Simultaneously, we revised our stand-alone credit profile on MPM to '###+' from 'b-'. - This reflects our belief that given MPM's current capital structure, high cash interest burden, and negative free cash flow, either KCC-supported debt repayment or a material improvement in the silicones market would...
