S&P gives Tronox B+, loan BB-

S&P said it gave a BB- issue and 1 (rounded estimate: 95%) recovery rating to Tronox Holdings plc’s planned $400 million senior secured term loan. The agency also assigned the company a B+ rating with a positive outlook, raised Tronox Ltd.’s issuer rating to B+ with a revised positive outlook from B with a stable outlook and then withdrew Tronox Ltd.’s ratings and outlook. Tronox Holdings is the parent company of Tronox Ltd.

The agency concurrently upgraded also raised the first-lien debt issued by subsidiaries to BB from BB-; the recovery rating remains 1 (rounded estimate: 95%). S&P also boosted the unsecured debt ratings to BB- from B and with a recovery rating of 2 (rounded estimate: 80%).

“Our rating actions reflect our view that credit metrics at Tronox, a producer of titanium dioxide (Tio2) and byproduct zircon, will remain at recently strengthened levels, and potentially strengthen further. We consider the improved earnings as well as reduced debt levels to be sustainable. Our view for sustained improvement in earnings incorporates favorable demand trends for the company's products and the company's vertical integration,” S&P said in a press release.

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