Moody's rates Tronox SGL-2

Moody's Investors Service said it assigned a speculative grade liquidity rating of SGL-2 to Tronox Worldwide LLC (Ba3 corporate family rating).

The SGL-2 rating indicates good liquidity and reflects a relatively large revolving credit facility with substantial unused capacity, a very favorable debt maturity profile, a modest cash balance of around $40 million and reasonable flexibility under the financial covenants for the company's credit facility, the agency said.

These positive factors are somewhat offset by Moody's expectation that the company's free cash flow will be breakeven or slightly negative over the next 12 to 15 months.

Tronox's ratings reflect the company's position as a leading producer of titanium dioxide and relatively modest debt burden. These positives are offset by weak historical operating performance and the presence of an unusually large number of legacy environmental liabilities, the agency said.

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