S&P lifts Kronos, loan; rates notes

S&P said it raised its corporate credit rating on Kronos Worldwide Inc. to B from B- and raised the issue-level rating on its secured term loan to B+ from B. The 2 recovery rating is unchanged, indicating an expectation for meaningful (70%-90%; rounded estimate: 75%) recovery in the event of a payment default.

The outlook is stable.

The agency also assigned a B+ issue-level rating and 2 recovery rating to the company's proposed €400 senior secured notes. The 2 recovery rating indicates an expectation for meaningful (70%-90%; rounded estimate: 75%) recovery in the event of a payment default. Kronos International Inc., a subsidiary of Kronos, is the issuer of the notes.

S&P said the upgrade follows a faster-than-expected recovery in the global titanium dioxide market, which has led to meaningfully improved credit measures at Kronos and its parent Valhi Inc.

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