S&P rates Kronos loan BB-

Standard & Poor's said it raised its corporate credit ratings on Valhi Inc. and its subsidiary, Kronos International Inc., to BB- from B+.

At the same time, the agency said it assigned its BB- corporate credit rating to Kronos Worldwide Inc. The outlook is stable.

The agency said it also assigned its BB- issue-level rating to Kronos Worldwide's $600 million term loan facility due 2019. The agency assigned this facility a recovery rating of 4, indicating an expectation of average recovery in the event of a payment default.

"The upgrade reflects our expectation that sustained strength in the TiO2 market over the next 12 to 24 months will support current operating results and credit metrics, despite an increase in debt as a result of this refinancing transaction," said S&P credit analyst Seamus Ryan in a news release.

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