The ratings on Chicago-based LKQ Corp. reflect Standard&Poor's Ratings Services' view of the company's weak business risk profile and its aggressive financial risk profile. LKQ is the nation's largest provider in a very fragmented market for recycled light vehicle original equipment manufacturer (OEM) products and related services. 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 $603 million as of Dec. 31, 2010. We view LKQ's narrow business scope, concentration of operations in the U.S., relatively small scale, and exposure to volatile scrap steel prices as business risks. However, LKQ's addressable market is large; the total collision replacement parts market, including sales
