S&P lifts Kronos Worldwide

S&P said it raised its corporate credit rating on Kronos Worldwide Inc. to B+ from B. The outlook is stable.

S&P also raised the issue-level rating on the secured notes to BB- from B+ due to the one-notch upgrade of the corporate credit rating. The recovery rating remains 2, indicating an expectation of substantial (70% to 90% range; rounded estimate: 80%) recovery in the event of a payment default.

“The upgrade is due primarily to continued strength in the global TiO2 market, which has led to improved credit measures at Kronos and its parent Valhi Inc.,” S&P said in a news release.

“We believe the recent improvements of the companies' performance are sustainable due to continued supply constraints in the industry, including Venator Materials plc’s decision to close its Pori, Finland, facility, and continued capacity reductions in China.”

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