Research Update: Momentive Specialty Chemicals Inc.'s Proposed $574 Million Second-Lien Notes Rated 'CCC+'; Ratings Affirmed Oct 10
Standard & Poors, October 2010
Abstract
The parent holding companies of U.S.-based chemical producers Momentive Specialty Chemicals Inc. (MSC; formerly Hexion Specialty Chemicals Inc.) and Momentive Performance Materials Inc. (MPM) have merged. MSC plans to raise $574 million in second-lien secured notes to refinance existing second-lien notes. We are assigning a 'CCC+' issue rating and a recovery rating of '5' to MSC's proposed $574 million second-lien notes. At the same time, we are affirming our 'B-' corporate credit rating on the company. The stable outlook reflects our expectation that MSC's earnings, liquidity, and cash flow will remain at least steady, though our base case is for a modest improvement in earnings in the near term. We also expect management actions will support recently improved leverage credit...
Companies mentioned in this report are: Momentive Specialty Chemicals Inc.,Hexion U.S. Finance Corp.,Hexion Nova Scotia Finance ULC,Momentive Performance Materials Inc.
Action: Affirmed
Action: New Rating
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.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
Momentive Specialty Chemicals Inc.,Hexion U.S. Finance Corp.,Hexion Nova Scotia Finance ULC,Momentive Performance Materials Inc.
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