S&P drops Tronox loan

Standard & Poor's said it lowered its issue-level ratings on Tronox Worldwide LLC's $250 million revolving credit facility and $200 million term loan to D from CC and removed the ratings from Creditwatch, where they were placed July 2008.

The recovery ratings on the company's revolving credit facility and term loan are 2, indicating the expectation for substantial recovery in the event of a payment default, the agency said.

According to S&P, the downgrade follows Tronox Inc.'s announcement that it has filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York, listing assets of $1.56 billion and liabilities of $1.22 billion.

The court filing indicates that Tronox did not make a recent scheduled amortization payment or interest payment due on the credit facilities, the agency added.

On Dec. 3, the agency said it lowered the corporate credit rating on Tronox Inc. to D from CCC- while it also lowered the rating on the company's $350 million senior unsecured notes to D from CC.

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