Moody’s turns Kronos view to negative

Moody's Investors Service said it changed Kronos Worldwide, Inc. and Kronos International Inc.'s outlook to negative from stable.

Concurrently, Moody's affirmed Kronos' B1 corporate family rating, B1-PD probability of default rating and the B2 rating on the €400 million of senior secured notes due 2025 issued by Kronos International. Kronos' SGL-1 speculative grade liquidity rating remains unchanged.

“The negative outlook reflects Moody's view that Kronos' earnings and credit metrics will stay outside the rating boundaries for the next several quarters and a prolonged weakness in TiO2 demand poses a risk to its strong liquidity profile, which is critical to maintaining the rating. We will continue to monitor the evolving business conditions in Europe and evaluate the company's operational responses and financial prudence to safeguard its credit profile,” the agency said in a press release.

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