MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it
lowered its corporate credit rating (CCR) on Texas-based Valhi Inc. and its
unit, Kronos International Inc. to 'B' from 'B+', after Valhi's weak
first-quarter operating results in the titanium dioxide (TiO2) business, which
reflects a challenging operating environment with weak demand in the United
States and higher input costs.
The outlook is stable, S&P said.
The downgrade also factors in the aggressive financial policy Valhi has
adopted with its distribution of Titanium Metals Corp. shares in 2007 and its
debt-financed repurchase of CompX International Inc. shares, S&P added.
The ratings agency said it expects these weak trends to continue at least
through the rest of 2008 and the first half of 2009 before operating performance
begins to stabilize or improve.
TFN.newsdesk@thomson.com
pvi/alo
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