S&P cuts Momentive Performance

S&P said it downgraded Momentive Performance Materials Inc. and the rating on its senior secured credit facility to B from B+. The 3 recovery rating is unchanged, indicating S&P’s expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

“The downgrade follows our revised expectation that 2020 EBITDA and credit metrics will remain weaker than depressed 2019 levels given the effect coronavirus has had on the global economy. Following a weak 2019 driven by depressed siloxane pricing due to oversupply, the company is facing a challenging economy in 2020 that is effecting key silicone industrial end markets such as automotive and construction, leading to weakened credit measures below our previous expectations,” S&P said in a press release.

The outlook is negative.

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