S&P downgrades Kronos

S&P said it lowered the corporate credit rating on Kronos Worldwide Inc. to B- from B.

The outlook is stable.

S&P also said it downgraded the rating on the company's $350 million term loan to B from B+.

The recovery rating remains at 2, indicating 70% to 90% expected default recovery.

Operating performance at Kronos Worldwide and parent company, Valhi Inc., was weaker than expected in 2016, S&P said, and 2017 EBITDA is expected to be weaker than prior forecasts.

The downgrades follow weaker-than-expected 2016 EBITDA and credit measures at Kronos' parent company level, S&P said.

But favorable titanium dioxide (TiO2) prices could lead to improved operating results and result in a gradual improvement in leverage, the agency said.

Kronos is considered a core member of the Valhi group as Kronos has historically contributed more than 90% of Valhi's total EBITDA, S&P noted.

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