Fitch lowers Kronos to B+

Fitch Ratings said it downgraded the issuer default ratings of Kronos Worldwide, Inc. and its wholly owned subsidiary, Kronos International, Inc., to B+ from BB-.

The outlook is stable.

Fitch said the downgrade reflects a longer than expected downturn in the TiO2 market that has resulted in the company generating consistently negative free cash flow (FCF), which Fitch expects will likely continue over the medium-term.

Additionally, Kronos' liquidity position is likely to remain weaker than previously expected owing to weak TiO2 fundamentals that have limited the company's available borrowings under its two revolving credit facilities, particularly its European revolver, which has restrictive financial covenants, the agency said.

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