S&P rates Tronox loans BB-, notes B+

Standard & Poor's said it assigned its BB- corporate credit rating to Tronox Inc. S&P also assigned its BB- rating and its recovery rating of 3 to Tronox's proposed $450 million senior secured credit facilities and assigned its B+ rating to the company's $350 million senior unsecured notes due 2012.

The outlook is positive.

The ratings on Tronox reflect the company's limited business diversity, exposure to cyclical end markets and commodity product cycles and an aggressive financial profile including significant environmental liabilities, S&P said.

These weaknesses are only partially offset by Tronox's good geographical diversity, solid market positions within the titanium dioxide (TiO2) markets, access to environmentally compliant and proprietary process technology and competitive cost positions, S&P said.

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