Our rating on TRW Automotive Inc. reflects our assessment of its financial risk as "intermediate" and its business risk profile as "fair." The intermediate financial risk profile reflects the company's moderate financial policy, which has led to permanent debt reduction using discretionary cash flow. At the current rating, Standard&Poor's Ratings Services believes TRW can sustain adjusted leverage of 2x or less during the year ahead, funds from operations (FFO) to total debt of 40% or better, and at least $200 million in annual free cash flow (by our calculation) after capital spending and cash pension and other postemployment benefit (OPEB) funding, even if North American auto demand does not improve substantially and European demand remains weak. TRW's metrics
