S&P upgrades Momentive Performance

S&P said it raised the issuer credit rating on Momentive Performance Materials Inc. to B+ from B and placed the rating on CreditWatch with positive implications.

The agency also said it raised the ratings on the company's first- and second-lien notes by one notch and placed the ratings on CreditWatch with positive implications.

The actions reflect a view that Momentive will receive some level of group support from its pending acquisitions by an investor group that includes SJL Partners, KCC Corp. and Wonik QnC Corp., S&P said.

S&P also said it assigned a B+ rating and 3 recovery rating to the company's new $839 million term loan B due 2024.

The rating also is on CreditWatch positive, the agency said.

Once Momentive's existing debt is paid in full, the agency said it will withdraw the ratings on this debt, including the 3.88% first-lien notes due 2021 and 4.69% second-lien notes due 2022.

S&P said it plans to resolve the CreditWatch upon the completion of the transaction.

The upgrades reflect a view of the improved end-market fundamentals in the overall silicones market, leading to sustained improvement in earnings and profitability measures for the company, the agency said.

The company also has benefitted from initiatives to shift its portfolio toward more specialty value-added products, S&P said.

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