We believe North American automotive collision replacement products provider LKQ's consistent profitability and free cash generation in the past three years reflect the company's resilient business model. LKQ's improved credit measures reflect, in our opinion, its ability to effectively execute its business strategy of expanding through acquisitions without impairing earnings, cash flow, or its balance sheet. We are raising the corporate credit rating on LKQ to 'BB+' from 'BB'. The outlook is stable, reflecting our assumption that LKQ will generate continuing organic EBITDA expansion and free cash generation despite the sluggish economic outlook. On May 25, 2011, Standard&Poor's Ratings Services raised its corporate credit rating on Chicago-based LKQ Corp. to 'BB+' from 'BB'. The rating outlook is stable.
