Moody's rates Kerr-McGee's Tronox loans Ba2, notes B1

Moody's Investors Service said it assigned a Ba2 rating to the $450 million senior secured credit facilities of Tronox Worldwide LLC. The senior secured credit facilities consist of a $200 million six-year secured term loan and a $250 million five-year secured revolver.

A proposed $350 million seven-year senior unsecured note has been assigned a B1 rating.

The corporate family rating of Tronox is Ba3.

Moody's said the ratings reflect the company's position as a leading producer of titanium dioxide (TiO2) - with 13% global market share - and relatively modest debt burden. These positives are offset by weak historical operating performance and the presence of an unusually large number of legacy environmental liabilities.

Proceeds from the term loans, the notes and the proposed initial public offering of Holdco will be distributed to Holdco's parent, Kerr-McGee Corp. (Ba3 corporate family rating).

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