S&P ups Momentive loans

Standard & Poor's said it raised its rating on Momentive Performance Materials Inc.'s and its subsidiaries' senior secured credit facilities to B+ from B.

The agency said it revised the recovery rating on the senior secured credit facilities to 1 from 2. The recovery rating of 1 reflects an expectation of very high recovery in the event of a payment default. The agency said the improvement in recovery prospects is the result of less senior secured debt outstanding following the refinancing.

In addition, S&P said it removed the issue-level ratings on the senior secured credit facilities from CreditWatch, where they were placed with positive implications on May 16.

At the same time, the agency said it affirmed its other ratings on the company, including the B- corporate credit rating and the B- issue rating and 4 recovery rating on the new notes. The outlook remains negative.

"The ratings on MPM reflect the company's 'highly leveraged' financial profile and what we deem to be a 'fair' business risk profile," said S&P credit analyst Cynthia Werneth in a news release.

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