The ratings on Albany, N.Y.-based Momentive Performance Materials Inc. (MPM) reflect a highly leveraged financial profile, an aggressive financial policy, and a fair business risk profile as a global producer of silicones and quartz. Since controlling shareholder Apollo Global Management L.P. placed MPM and Momentive Specialty Chemicals Inc. (MSC; B-/Stable/--) under a single holding company on Oct. 1, 2010, Standard&Poor's Ratings Services assesses the two companies' credit quality in a manner that recognizes their shared parentage despite each company maintaining a separate capital structure. We believe that the merger will benefit credit quality only modestly. Following an early 2011 successful note offering to refinance debt, total adjusted debt at MPM as of Sept. 30, 2011 is about $3.9
