S&P ups Kronos loan to BB

Standard & Poor's said it lowered its corporate credit rating on Kronos Worldwide Inc. to B+ from BB-.

The outlook is stable.

At the same time, S&P raised its issue-level rating on the company's $400 million term loan to BB from BB- and revised the recovery rating to 1 from 3.

"The downgrade reflects weaker-than-expected operating performance at Kronos because of significant deterioration in TiO2 market conditions, which should remain weak through much of 2013 before gradually recovering," S&P credit analyst Seamus Ryan said in a news release.

"We expect the company's EBITDA to be negative in the first half of 2013 and that its funds from operations to total adjusted debt will approach 10% in 2013."

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