S&P downgrades Kronos

Standard & Poor's said it lowered the corporate credit rating on Kronos Inc. to B- from B.

The agency also said it lowered the rating on the company's $1.708 billion first-lien term loan, including the $315 million add-on, to B- from B with a recovery rating of 3, indicating 50% to 70% expected default recovery.

S&P also said it lowered the rating on the $1.039 billion, including the $175 million add-on, second-lien term loan to CCC with a recovery rating of 6, indicating 0 to 10% expected default recovery.

The outlook is stable.

The downgrade reflects Kronos's increasingly aggressive financial policy with a re-leveraging to a pro forma 8.9x with its fourth debt-financed dividend in three years, said Jacob Schlanger, an S&P analyst.

The stable outlook reflects the currently high leverage and an expectation that leverage will decline modestly over the next year, assuming that the company's strong operating performance continues without further debt-financed dividend payments, Schlanger said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.