Moody’s downgrades Tronox, loans, bonds

Moody's Investors Service said it downgraded Tronox Ltd.’s corporate family ratings to B2 from B1, the rating on its senior secured term loans to B1 from Ba3 and the ratings on its senior unsecured bonds to Caa1 from B3.

The speculative grade liquidity rating was affirmed at SGL-2.

The outlook is changed to negative from stable.

Moody’s said the downgrades reflect the extent to which Tronox's metrics have become stressed for the ratings while the continued weakness in the TiO2 pigment markets results in weak and declining prices and profits for Tronox. The decline in adjusted EBITDA from $116 million in the second quarter of 2015 to $86 million in the third quarter underscores this trend, while prices in the fourth quarter continue to slip and the outlook for the next few quarters is likely to be at best flat but might also exhibit further price declines in TiO2 pigment.

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