The ratings on Wilton, Conn.-based silicones and quartz producer Momentive Performance Materials Inc. reflect its satisfactory business risk profile as a leading global silicones producer and its 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 July 1, 2007, 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 EBITDA is about 8x. Supporting the ratings are Momentive's No. 2 market position in the highly consolidated silicones market, and an increasing contribution from specialty products in the portfolio. These favorable business
