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Recovery Report: Momentive Specialty Chemicals Inc.'s Recovery Rating Profile Nov 11 Product Image

Recovery Report: Momentive Specialty Chemicals Inc.'s Recovery Rating Profile Nov 11

  • ID: 2027233
  • November 2011
  • Standard & Poors

Abstract
Standard & Poor's Ratings Services is updating its recovery analysis on Momentive Specialty Chemicals Inc.'s (MSC) rated debt, as part of our ongoing ratings surveillance process. Our simulated default scenario contemplates a default in 2013, due to weaker demand for MSC's products amid recessionary conditions. This would compress the company's operating margins to single digits from recently improved levels, resulting in severely constrained liquidity and covenant compliance challenges. Our estimated distressed emergence EBITDA of $294 million assumes that the company would emerge at a time when cyclical demand gains some momentum from its trough levels. As a result, we estimate gross recovery valuation for creditors to be $1.6 billion. On Oct. 1, 2010, the parent holding companies of MSC and...

Companies mentioned in this report are: Momentive Specialty Chemicals Inc.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Full Analysis

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