Momentive Performance Materials Inc.'s earnings and liquidity have improved significantly since the first quarter of 2009. As a result, we have raised our ratings on Momentive by two notches, including the corporate credit rating, which went to 'CCC+' from 'CCC-'. All the ratings remain on CreditWatch with positive implications because we could consider another modest upgrade in the near term if earnings and cash flow continue to strengthen and we believe the company is on a path to deleveraging somewhat, alleviating concerns about its ability to refinance debt as it begins to come due in 2012. On Nov. 18, 2009, Standard&Poor's Ratings Services raised its ratings on Albany, N.Y.-based Momentive Performance Materials Inc. and its subsidiaries by two
