The ratings on Chicago-based LKQ Corp. reflect the company's weak business risk profile and its aggressive financial risk profile. LKQ is the nation's largest provider of recycled automotive original equipment manufacturer (OEM) products and related services, with sales and distribution facilities that reach most major markets in the U.S. LKQ is also the largest nationwide provider of aftermarket collision replacement products and refurbished bumper covers and wheels. LKQ had total balance sheet debt of $647 million as of June 30, 2008. LKQ's addressable market is large; the total collision replacement parts market, including sales by the auto manufacturers, is valued at nearly $15 billion. Although LKQ's recycling business is capital-intensive relative to its aftermarket business, overall capital requirements are relatively
