S&P ups Millennium Inorganic

Standard & Poor's said it raised the corporate credit rating on Millennium Inorganic Chemicals to B- from CCC+ and its $650 million first-lien senior secured credit facility to B from B- with recovery rating at 2.

The company's $230 million second-lien term loan due in 2014 was raised to CCC from CCC-, with a recovery rating of 6.

The outlook is stable.

"The upgrade reflects the recent amendment and expected completion of a proposed capital infusion, which would alleviate covenant concerns and bolster short-term liquidity," S&P analyst Henry Fukuchi said in a statement.

Ratings reflect the company's limited business diversity, exposure to cyclical end markets and commodity product cycles, mediocre operating margins and weak cash flow protection measures, the agency said.

Mitigating factors include the company's good geographic diversity, solid position in TiO2 markets and ownership by Cristal, the agency noted.

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