On Oct. 21, 2004, Standard&Poor's Ratings Services assigned its 'BB+' rating to the $300 six-year senior secured term loan E of TRW Automotive Inc.'s (TRW) and affirmed its 'BB+' corporate credit rating and all other ratings on the company. A recovery rating of '3' was also assigned to the term loan, indicating meaningful recovery of principal (50%-80%) in a post default scenario. The outlook on Livonia, Mich.-based TRW is stable. At June 25, 2004, TRW's outstanding debt totaled about $3.2 billion. Proceeds from the newly issued term loan E under TRW's existing senior credit agreement, along with cash on hand and existing liquidity arrangements, will be used to repurchase a $493.5 million net amount of a seller note,
