S&P rates MEMC notes BB

Standard & Poor's said it assigned a BB corporate credit rating to MEMC Electronic Materials Inc. and a BB issue-level rating and a 4 recovery rating to the company's $550 million of senior notes due 2019. The 4 recovery rating indicates that unsecured creditors can expect average (30% to 50%) recovery if a payment default occurs.

The outlook is stable.

The rating on MEMC reflects a fair business profile and intermediate financial profile as well as the company's growing exposure to the solar energy industry and its mid-tier competitive position in a highly cyclical industry, the agency said.

Offsetting weaknesses are the company's internal sourcing of polysilicon, its diversified businesses, its position on the solar value chain and the market position and project pipeline of its solar power development segment, the agency added.

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