...- PMHC II Inc.'s operating and financial performance have declined for consecutive quarters, in contrast with our previous expectations, causing its S&P-adjusted leverage to increase to levels that we view as unsustainable. We do not anticipate an improvement in the company's performance over the next 12 months, though we also do not foresee a further deterioration or default over that period. - The company has been unable to generate materially positive free cash flow and its Electronics and Specialties segment remains challenged due to sustained weakness in its alkaline battery chemicals business. - We are lowering our issuer credit rating on PMHC II and our issue-level rating on its first-lien secured credit facility, which comprises a $85 million senior secured revolving credit facility and a $515 million first-lien secured term loan, to '###+' from 'B-'. Our '3' recovery rating on the first-lien facility remains unchanged. - At the same time, we are lowering our issue-level rating...
