S&P cuts Millennium Inorganic

Standard & Poor's said it lowered the corporate credit rating on Millennium Inorganic Chemicals to B- from B and placed the rating on CreditWatch with negative implications.

The agency also downgraded the company's $550 million first-lien term B bank loan due 2014 to B+ from BB-, the $230 million second-lien term loan due 2014 to CCC from CCC+ and $100 million revolving credit facility due 2012 to B+ from BB-.

According to S&P, the downgrade follows the company's announcement of weak operating results for the fiscal year ended Dec. 31 and reflects the increased possibility that Millennium will have to seek covenant relief from its lenders within the next several quarters.

The downgrade also reflects expectation that difficult market conditions for producers of titanium dioxide will forestall the company's efforts to improve its financial profile to a level consistent with the prior ratings, S&P said.

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