Moody's: Kronos loan B1

Moody's Investors Service said it moved the outlook for Kronos Worldwide Inc.'s ratings to negative from stable and assigned a B1 rating to its unsecured term loan payable to Contran Corp., its indirect parent.

Kronos' corporate family rating was affirmed. The speculative grade liquidity rating of SGL-3 was affirmed.

"The negative outlook reflects the slow recovery in Kronos' operating results relative to its peers," Moody's analyst James Wilkins said in a news release. "If the company continues to underperform expectations such that reported EBITDA does not rise to $175 million per year, the corporate family rating could be downgraded."

The unsecured term loan due 2018 is rated two notches lower than the Kronos corporate family rating, as a result of being structurally subordinated to the revolver debt at its European subsidiaries and non-debt obligation at its subsidiaries.

© 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.