Research Update: Momentive Specialty Chemicals Inc. 'B-' Rating Affirmed; Proposed Senior Secured Financing Rated 'B-' (Recovery: '3') Mar 12
- Language: English
- Published: March 2012
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.
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Research Type: Full Analysis