S&P: Momentive DIP loan BB-

Standard & Poor's said it assigned a point-in-time BB- rating to Momentive Performance Materials USA Inc.'s new money $300 million DIP term loan facility due the earlier of April 2015 or the effective date of the company's plan of reorganization.

Since the DIP term loan facility rating is a point-in-time rating, it is effective only for the date of this report and the agency said it will not review, modify, or provide ongoing surveillance of the rating.

Taken together, a DIP issue rating captures an analytical assessment of the viability of the reorganization of a company's business and the amount of the DIP obligation relative to the company's value - both as a reorganized entity and on a liquidation basis, S&P said.

The DIP financing is important to Momentive since it will allow the company to roll up letters of credit for counterparties during the pendency of the bankruptcy, as well as for liquidity purposes in order for the company to meet operating and capital needs during bankruptcy, the agency said.

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