S&P might upgrade Valhi, Kronos

Standard & Poor's said it placed all its ratings, including the CCC+ corporate credit ratings, on Valhi Inc. and its subsidiary, Kronos International Inc., on CreditWatch with positive implications.

The CreditWatch listing reflects S&P's expectation that favorable industry trends may support improving operating results and a stronger financial profile for Valhi. The agency said the listing also reflects the recent announcement of a stock offering of approximately 7.8 million shares through Kronos Worldwide. The intended use of the proceeds is for general corporate purposes, which may include possible acquisitions of additional TiO2 facilities in the future.

The ratings on Valhi reflect the company's highly leveraged financial profile and financial policy concerns, as well as its limited diversity and exposure to cyclical commodity product cycles, S&P said.

Offsetting factors include the currently favorable industry conditions, the company's improved liquidity position and its well-established position among the leading global TiO2 producers, the agency said.

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