Moody’s drops Momentive, notes

Moody's Investors Service said it downgraded Momentive Performance Materials Inc.'s corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

Concurrently, the agency downgraded the $1.1 billion 3.88% first-lien senior secured notes due 2021 to Caa1 from B3 and $250 million 4.69% second-lien senior secured notes due 2022 to Caa3 from Caa2.

The SGL-3 speculative grade liquidity rating was affirmed, meaning the company's liquidity position for the next 12 to 18 months is adequate.

The outlook is stable.

"The change in Momentive's rating to Caa1 from B3 comes following the company's poor third-quarter 2015 performance, and our expectation that Momentive's sales and margins will come under increasing pressure due to weakening end-markets for silicones, especially in Asia," Anthony Hill, Moody's vice president, senior credit officer and lead analyst for Momentive, said in a news release.

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