The ratings on Wilton, Conn.-based silicones and quartz producer Momentive Performance Materials Inc. reflect its satisfactory business risk profile as a leading global silicone producer and very high debt leverage following Apollo Management's December 2006 acquisition of 90% of the company from General Electric Co. (GE) for $3.9 billion. At Dec. 31, 2006, total debt was about $3.5 billion, including $400 million of seller notes held by Momentive's holding company parent and a small amount of tax-effected postretirement obligations and capitalized operating leases. Total adjusted debt to adjusted 2006 EBITDA was more than 8x. Supporting the ratings are Momentive's No. 2 market position in the profitable, fast growing and highly consolidated silicones market, and an increasing contribution from specialty products
