Research Update: Hexion Specialty Chemicals Issue Ratings Lowered To 'D' From 'CCC' Aug 09

Standard & Poors, August 2009

Abstract
We are lowering our issue-level ratings on Hexion Specialty Chemicals' 9.2% debentures due 2021, 7.875% debentures due 2023, and 8.375% debentures due 2016 to 'D' from 'CCC'; the recovery ratings on this debt remains '5'. Hexion has purchased a total of $71 million in face of these debentures for a cash consideration of $31 million. We affirmed all other ratings, including the 'CCC+' corporate credit rating. The negative outlook is based on concerns about the company's deteriorating operating performance. On Aug. 14, 2009, Standard & Poor's Ratings Services lowered its issue-level ratings on Hexion Specialty Chemicals Inc.'s 9.2% debentures due 2021, 7.875% debentures due 2023, and 8.375% debentures due 2016 to 'D' from 'CCC'. The recovery ratings on these debt...

Companies mentioned in this report are: Momentive Specialty Chemicals Inc.,Hexion Nova Scotia Finance ULC
Action: Affirmed
Action: Downgraded

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 Nova Scotia Finance ULC

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