Research Update: Momentive Specialty Chemicals Inc. 'B-' Rating Affirmed; Proposed Senior Secured Financing Rated 'B-' (Recovery: '3') Mar 12
- Language: English
- Published: March 2012
The ratings on Columbus, Ohio-based Hexion Specialty Chemicals Inc. reflect a highly leveraged financial profile, with total leverage in excess of 10x, some concerns on liquidity despite an improvement in cash generation in 2009, and a weak business risk profile as a global manufacturer and marketer of thermoset resins. Standard & Poor's Ratings Services views Hexion's financial profile as highly leveraged. Total debt to EBITDA is well above 10x as of Sept. 30, 2009. Despite our expectation that an ongoing trend of improvement in EBITDA will continue into 2010, we expect leverage will remain high next year. Leverage increased meaningfully in 2008 and 2009 following a rapid decline in EBITDA as a result of the economic downturn. EBITDA declined by...
Companies mentioned in this report are: Momentive Specialty Chemicals Inc.
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Momentive Specialty Chemicals Inc.