S&P cuts Tronox to D

Standard & Poor's said it lowered the corporate credit rating on Tronox Inc. to D from CCC-, its $350 million senior unsecured notes to D from CC and its $250 million revolving credit facility and a $200 million term loan to CC from CCC+. Ratings on the senior secured debt remain on CreditWatch with negative implications, where they were placed in July to reflect Tronox's appointment of an investment bank to advise it on strategic alternatives, which included capital restructuring.

"The downgrades follow the company's recent 8-K filing announcing its decision to not make a Dec. 1, 2008, interest payment on its $350 million senior unsecured notes, due 2012," S&P analyst Paul Kurias said in a statement.

"Under the terms of the indenture governing the notes, Tronox has a 30-day grace period to make the interest payment. Failure by the company to make the interest payment within the grace period could cause unsecured note holders to accelerate the maturity on the notes and trigger cross-default clauses on the company's senior secured debt," Kurias said.

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