S&P turns Momentive outlook to positive

S&P said it changed Momentive Performance Materials Inc.’s outlook to positive from stable and affirmed its B+ ratings on the company and its first-lien term loan. The recovery rating remains 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in default.

“Momentive continues to make progress on profitability-enhancing initiatives aimed at rationalizing its global asset base, enhancing plant productivity, and further transitioning its portfolio toward higher-margin formulated silicone and additive products,” the agency said in a press release.

The outlook reflects the company's improved cost structure and product focus, as well as a forecast for a material improvement in credit measures, with weighted average S&P Global Ratings-adjusted debt to EBITDA around 5x, S&P said.

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