Among the leading global producers in the highly concentrated silicones market, with good diversification by customers, products, and regions Significant industry oversupply, leading to very competitive pricing and low operating margins Unsustainably high debt leverage Improved (but still weak) liquidity, following recent refinancing and the receipt of a one-time payment in connection with the amendment of a supply contract Likely to consume significant cash in operations for the next several quarters Default likely in 12-18 months under our base-case assumptions Although Momentive Performance Materials Inc.'s (MPM) EBITDA has increased slightly in the past two quarters, Standard&Poor's Ratings Services' rating outlook on MPM is negative. This outlook reflects our expectation that silicone overcapacity, cyclically depressed demand for quartz by
