Moody’s gives Momentive notes B3, Caa2

Moody’s Investors Service said it has assigned a corporate family rating of B3 and a probability of default rating of B3-PD to Momentive Performance Materials Inc.

Concurrently, Moody’s said it has assigned a B3 rating to Momentive's $1.1 billion of 3.88% first-lien senior secured notes due 2021 and a Caa2 rating to the $250 million of 4.69% second-lien senior secured notes due 2022.

Moody's has also assigned an SGL-3 speculative-grade liquidity rating. The outlook is stable.

This is the first time that Moody's has assigned ratings to Momentive since it filed for reorganization under Chapter 11 of the United States Bankruptcy Code on April 13, 2014.

Momentive announced its emergence from Chapter 11 bankruptcy on Oct. 24.

"The assigned B3 ratings reflect Momentive's high financial leverage, relative to similar sized companies in the B-rating category, and its expectation that Momentive's product margins will continue to come under pressure due to the company's low level of backward integration, and the highly competitive market conditions for global silicones," said Anthony Hill, a Moody's vice president - senior credit officer and lead analyst for Momentive.

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