Fitch rates Kronos notes BB/RR2

Fitch Ratings said it affirmed Kronos Worldwide Inc.'s long-term issuer default ratings and the ratings of its wholly owned subsidiary, Kronos International, Inc., at B+.

The agency also assigned a BB/RR2 rating to Kronos International's announced €400 million senior secured notes.

The outlook is stable.

Fitch expects note proceeds will be used to repay in full the outstanding term loan debt at Kronos Worldwide as well as borrowings under the North American ABL revolver, with excess proceeds going towards general corporate purposes.

The notes will be guaranteed by Kronos Worldwide and secured by a first-priority lien on the stock of certain domestic and foreign subsidiaries.

The agency noted that the RR2 rating indicates superior recovery (71% to 90%) for the notes due in part to the limited amount of first-lien debt in Kronos' capital structure.

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