Good market position Recession-resistant market Good EBITDA margins Positive free cash flow Narrow business scope and scale Fragmented and competitive industry Dependence on good relationships with insurance companies The ratings on LKQ Corp. reflect Standard&Poor's Ratings Services' revised business and financial risk profile scores on LKQ. We revised the business risk profile to fair from weak, reflecting the company's effective business model, which we believe has been resilient during the recession. The revision further reflects our view of LKQ's solid competitive position based on its national operating network and effective customer relationships, and its demonstrated good profitability. Lease-adjusted operating income (before depreciation and amortization) to revenues was 15.6% as of Dec. 31, 2009, up from 14.6% at year-end 2008.
