Fitch cites TiO2 outlook as factor in cutting Kerr-McGee

20 December 2001 21:23  [Source: ICIS news]

HOUSTON (CNI)--The Fitch debt rating service lowered its mark Thursday on integrated oil company Kerr-McGee, citing a weak outlook for the company's titanium dioxide (TiO2) as a factor.

TiO2 contributes about 30% of the Oklahoma City, Oklahoma-based company's revenues.

In its report on Kerr, Chicago, Illinois-based Fitch noted that TiO2 is having "a weaker year than previously expected." Fitch said Kerr does not expect chemical operations to improve materially in 2002.

Kerr-McGee operates five TiO2 plants with a combined capacity of 575 000 tonne/year, ranking the company as the world's third largest producer and marketer of the product, according to Fitch.

Fitch said Kerr has 63% of its TiO2 capacity in the US, 20% in Europe and the rest in Australia.

The debt rating service lowered Kerr's senior unsecured debt to BBB from BBB+ while affirming an F2 rating on the company's commercial paper with an outlook of "stable."

By: Gary Taylor
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