The ratings on Wilton, Conn.-based silicones and quartz producer Momentive Performance Materials Inc. reflect its high leverage after the group's former owner, General Electric Co. (GE; AAA/Stable/A-1+), sold its silicones and quartz businesses to Apollo Management for $3.9 billion. Pro forma total debt was about $3.5 billion, adjusted to include tax-effected postretirement obligations, capitalized operating leases, and seller notes. Total adjusted debt to EBITDA was more than 7.5x. Standard&Poor's Ratings Services expects that debt leverage statistics will gradually improve based on favorable operating prospects, but note that the substantial reliance on debt in the financing of Apollo Management's purchase of GE's silicones and quartz businesses is a limiting factor in the ratings analysis. The transaction is expected to
