S&P cuts Momentive Performance

S&P said it downgraded the ratings for Momentive Performance Materials Inc. and its senior secured credit facility to B+ from BB-. The 3 recovery rating remains unchanged, indicating expectations for a meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

“The downgrade follows Momentive's significantly weaker performance in 2019 and our expectation that its EBITDA and credit metrics will remain relatively flat in 2020. The company has seen a significant decrease in EBITDA through the first nine months of 2019, which we expect to continue for the full year. This will likely cause 2020 to be weaker than we previously expected,” said S&P in a press release.

The outlook is negative.

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