S&P rates Tronox loan BBB-

Standard & Poor's said it assigned a BBB- rating and 1 recovery rating to the $1.3 billion term loan issued by Tronox Ltd. subsidiary, Tronox Pigments (Netherlands) BV.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The BB- rating and 5 recovery rating on Tronox Finance LLC's existing $900 million senior notes remain unchanged.

The agency also said it affirmed the BB corporate credit rating on Tronox Ltd.

The outlook is stable.

The ratings reflect the company's focus on the cyclical TiO2 market, the potential for depressed credit metrics in 2013 and exposure to demand variations that reflect economic growth in key markets, S&P said.

The ratings also consider the company's good geographic diversity, position as the only fully vertically integrated global TiO2 producer and an expectation that improving industry conditions should support operating performance and cash flow over the next year, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.