Fitch assigns Kronos loan BB-

Fitch Ratings said it assigned a BB- rating to Kronos Worldwide Inc.'s proposed $275 million six-year senior secured term loan.

The outlook is negative.

The facility is to benefit from upstream guarantees and is to be secured by equity interests, intercompany loans and a second-lien in domestic accounts receivable and inventory. The facility is not expected to have maintenance financial covenants.

Proceeds will be used to repay the Contran term loan and for general corporate purposes.

Fitch said the ratings reflect the company's solid market position (top five globally) in the titanium dioxide (TiO2) industry, adequate liquidity and modest debt levels combined with earnings volatility in the TiO2 industry.

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