Fitch lowers Valhi

Fitch Ratings said it downgraded Valhi, Inc.'s ratings as follows: issuer default rating to B+ from BB- and $100 million senior secured revolving credit facility to B+/RR4 from BB-.

The facility is secured by a pledge of 20 million shares of Kronos Worldwide, Inc. common stock owned by Valhi and borrowings are limited to a third of the market value of the pledged shares, the agency said.

In addition, Fitch said it has downgraded Kronos International, Inc.'s ratings as follows: issuer default rating to BB- from BB, senior secured revolving credit facility to BB from BB+ and senior secured notes to BB- from BB.

The outlook for both Valhi and Kronos International is stable.

The rating actions reflect unfavorable trends related to Valhi's titanium dioxide business, with declining operating earnings in 2007 and expected for 2008, the agency said.

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