Moody's lowers Tronox

Moody's Investors Service said it downgraded Tronox Worldwide LLC's corporate family rating to B3 from B2, its secured revolver and term loan to Ba3 (LGD2, 19) from Ba2 and its unsecured notes to Caa1 (LGD5, 73) from B3. The speculative grade liquidity rating was affirmed at SGL-4.

The outlook is negative.

The downgrade reflects an inability to raise prices to offset increasing costs that have caused operating margins to drop, according to Moody's.

Ratings are constrained by the company's operating performance, weak housing market, covenant compliance and liquidity-related pressures as well as large legacy environmental liabilities, the agency noted.

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