On Oct. 7, 2008, Standard&Poor's Ratings Services placed its ratings on Livonia, Mich.-based TRW Automotive Inc. on CreditWatch with negative implications. The CreditWatch reflects the rapidly weakening outlook for light-vehicle production in Europe, TRW's largest market, and ongoing challenges in an already weak North American market. The company said it expects a loss in the third quarter, including restructuring charges. TRW also withdrew its full-year 2008 sales and earnings guidance, citing lower future production in Europe and North America and increased commodity costs. The company intends to provide 2008 guidance when it reports third quarter results. Although TRW's credit profile, including liquidity, has been consistent with the current rating, we believe the outlook for the U.S., and particularly
