S&P lifts Hexion to B-

Standard & Poor's said it raised the corporate credit rating to B- from CCC+ on Hexion Specialty Chemicals Inc. and removed the ratings from CreditWatch with positive implications, where they were placed on Jan. 14, following the company's proposed financing plan.

The agency raised Hexion's first-lien senior secured facilities to B- from CCC+ and revised recovery ratings to 3 from 4, and its second-lien notes of $653 million to CCC+ from CCC with 5 recovery ratings.

The company's $200 million first-lien revolving loan commitment remains at B- with a 3 recovery rating, and the company's $951 million extended term loan is also B- with a 3 recovery rating. The $1 billion second-lien notes is rated CCC+ with 5 recovery rating.

The outlook is stable.

"The upgrade reflects an improvement in credit quality following the successful completion of Hexion's financing transaction including amendments to its senior secured credit facilities, and our expectation that an ongoing trend of improving operating results will continue into 2010," S&P analyst Paul Kurias said in a statement.

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