S&P rates Momentive notes CCC+

Standard & Poor's said it assigned a CCC+ rating and 5 recovery rating to Momentive Specialty Chemicals Inc.'s proposed $574 million second-lien notes. The 5 recovery rating indicates a 10% to 30% expected recovery in a default. The agency also said it affirmed the company's B- corporate credit rating.

The outlook is stable.

The proceeds will be used to pay down existing second-lien notes due 2014.

The ratings reflect a highly leveraged financial profile despite recent improvements in debt leverage, an aggressive financial policy and a weak business risk profile as a global manufacturer and marketer of thermoset resins, S&P said.

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