S&P drops Tronox to CCC+

Standard & Poor's said it lowered Tronox Inc.'s corporate credit rating to CCC+ from B and placed ratings on CreditWatch with negative implications.

The downgrade follows Tronox's steep decline in earnings for the quarter ended June 30 and increased concerns regarding the company's ability to comply with or amend the financial covenants within its credit facilities, according to the agency.

S&P said it now believes that a breach of financial covenants is increasingly likely this year unless additional flexibility can be negotiated.

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