On Jan. 13, 2009, Standard&Poor's Ratings Services lowered its ratings on Livonia, Mich.-based TRW Automotive Inc., including the corporate credit rating, which was lowered to 'BB' from 'BB+'. The ratings were also removed from CreditWatch, where they had been placed with negative implications on Oct. 7, 2008. The outlook is negative. The downgrade reflects our view that auto industry difficulties this year will pressure TRW's revenues, EBITDA, and cash generation, making it unlikely that TRW would be able to maintain credit measures appropriate for the previous rating. Our opinion is based on the rapidly deteriorating outlook for light-vehicle production in Europe, TRW's largest market, and the continuing recession in North America, where auto sales will also decline significantly
