On March 14, 2008, Standard&Poor's Ratings Services revised its outlook on Momentive Performance Materials Inc. to negative from stable. At the same time, we affirmed all our ratings on the company and its subsidiaries (see list below). We revised the outlook because operating income and funds from operations are below our expectations and, in view of the company's very aggressive debt leverage, we are concerned that high raw material costs and the current U.S. economic slowdown could make it difficult for Momentive to remain cash-flow positive. At Sept. 30, 2007, Momentive had $3.6 billion of debt outstanding, adjusted to include about $400 million of seller notes issued by its holding company parent and a modest amount of off-balance-sheet
