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Tronox Limited Ratings Downgraded

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On November 6, 2015, Moody’s downgraded the corporate family rating of Tronox Limited to B2 from B1, the probability of default rating to B2-PD from B1-PD, its senior secured term loans to B1 from Ba3 and the ratings on the Company’s senior unsecured bonds was downgraded to Caa1 from B3. According to Moody’s, 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. Moody’s further states that prices in Tronox’s feedstocks and co-products zircon and rutile have also significantly declined recently. Moody’s believes that some recovery is possible as the pigment industry moves into the seasonally stronger period next year, but the depth and duration of the trough and the prospects for recovery in prices are still unclear at this time. Read more on distressed companies.