Fitch affirms Valhi, Kronos

Fitch Ratings said it affirmed Valhi Inc.'s senior secured credit rating and senior unsecured (implied) rating at BB-and Kronos International Inc.'s senior secured debt rating of BB. The outlook for both Valhi and Kronos remains stable.

Fitch said the ratings are supported by Valhi's significant ownership of Kronos Worldwide Inc. and its strong operating margins and market position as a titanium dioxide producer.

The rating rationale also incorporates Valhi's complex corporate structure, dividend policy and fundamentally acquisitive strategy, Fitch said.

Valhi and Kronos International had a debt-to-EBITDA ratio of 3.6x and 2.4x, respectively, for the trailing 12-month period ending June 30. Total adjusted debt-to-EBITDAR ratios, incorporating gross rent, for Valhi and Kronos were 3.9x and 2.8x, respectively, for the same period.

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