Moody's lowers Venator view to stable

Moody's Investors Service said it affirmed Venator Materials plc's ratings at B1 and changed the outlook to stable from positive.

Moody's also said it affirmed Venator Materials LLC's Ba3 rating on the senior secured term loan B and the B2 rating on Venator Materials Corp.'s senior unsecured bonds.

The outlook revision reflects the lack of debt reduction and the likelihood that the company will be unable to reduce debt in 2019 due to the ongoing expenditures for the Pori plant restructuring and related costs, the agency said, and expectations of lower EBITDA for the year.

Moody's said it believes the end to the upcycle could still be several years away, but there are risks to this outlook, including softer demand if key economies were to weaken.

Venator's credit profile is principally constrained by heavy exposure to the highly cyclical titanium dioxide industry, which is currently facing high inventories and a destocking environment, the agency said.

Industry conditions will weaken and credit metrics will probably decline significantly, outside the normal boundaries for the current rating category, Moody's said.

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