Moody's: Cristal view negative

Moody's Investors Service said it affirmed Cristal Inorganic Chemicals Ltd.'s B2 corporate family and probability-of-default ratings, its Ba3 rating (LGD3, 30%) on the $230 million second-lien term loan due 2014 and $550 million first-lien term loan due 2014 and its Ba3 rating (LGD3, 30%) on the $100 million guaranteed first-lien revolving credit facility due 2012.

The outlook was changed to negative due to concerns over the company's ability to remain in compliance with the financial covenants in its credit agreements over the next 12 to 24 months, the agency said.

The B2 rating reflects the turnaround nature of the credit at this time against the backdrop of weakening industry fundamentals and the tightening covenants in the bank agreement and term loan, Moody's said.

The affirmation reflects Moody's belief that the sponsors, Gulf Investment Corp. (rated A2) and Tasnee, will provide additional capital over the next year, the agency said.

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