Moody's drops Tronox

Moody's Investors Service said it downgraded Tronox Worldwide LLC's corporate family rating to B2 from Ba3.

In addition, Moody's said it downgraded the company's secured revolver and term loan to Ba2 from Ba1 and its unsecured notes to B3 from B1, adding that the speculative-grade liquidity rating was lowered to SGL-4 from SGL-3.

The outlook is stable.

The agency added that the two notch downgrade for the corporate family rating is due to the company's inability to effect meaningful price increases to offset rapidly increasing input costs that have caused operating margins to drop from 6% in 2006 to just below breakeven in 2007.

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