Fitch affirms Kronos, Valhi ratings

Fitch Ratings said it has affirmed Valhi Inc.'s senior secured credit BB- rating and senior unsecured (implied) BB- rating and affirmed Kronos International Inc.'s senior secured debt rating of BB.

The outlook remains stable.

Fitch said the affirmation indicates both Valhi and Kronos' credit ratings are not materially affected by the pending recapitalization of Kronos Worldwide Inc., formerly known as Kronos Inc., the parent company of Kronos International.

Kronos is a wholly owned subsidiary of NL Industries Inc. And Valhi, directly and indirectly through its wholly owned subsidiary Tremont LLC, has an 85% ownership interest in NL.

The recapitalization will include the distribution of about 23.9 million shares of Kronos common stock and a $200 million promissory note payable by Kronos to NL. NL shareholders will receive one share of Kronos common stock for every two shares of NL common stock currently held.

The distribution will represent 48.7% of the common stock of Kronos. Post the recapitalization, Valhi will have a direct ownership interest in Kronos of 31% and 10% indirectly through its wholly owned subsidiary Tremont. NL will retain 51% ownership in Kronos as well.

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