Kronos Acquisition Holdings Inc.'s operating results were softer than expected, which, combined with the company's high debt burden, have pressured credit metrics and increased the risk of an EBITDA shortfall from lower margins or higher restructuring costs. As a result, we are revising our outlook on the company to negative from stable and affirming our 'B-' long-term corporate credit rating on the company. We are also lowering our issue-level rating on Kronos' first-lien term loan to 'B-' from 'B' and revising our recovery rating on the debt to '3' from '2' based on the company's proposed US$200 million senior secured term loan add-on. The higher secured debt outstanding at default leads to a lower expected recovery for the term loan
