S&P revises Kronos loan RR to 4

Standard & Poor's said it revised its recovery rating on Kronos Worldwide Inc.'s proposed term loan to 4 from 3 following the company's $75 million upsizing of the term loan to $350 million.

The rating on the term loan remains B+. The 4 recovery rating indicates an expectation for average (30% to 50%) recovery in the event of a payment default.

The company's B+ corporate credit rating remains unchanged.

S&P said the ratings on Kronos reflect its expectation that the company and the industry will continue to rebound from a very weak 2013 and that the company will not further increase debt to fund growth or returns to shareholders.

The ratings also reflect the highly volatile nature of the TiO2 industry, from which the company derives almost all of its earnings as one of the largest global producers, the agency said. Kronos' business risk profile is assessed as "weak" and its financial risk profile as "aggressive."

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