The ratings on TRW Automotive Inc. reflect Standard&Poor's Ratings Services' belief that TRW's creditworthiness has improved because of the moderate auto market recovery, cost restructuring actions taken during the global downturn, and renewed attention to debt reduction. We expect TRW to remain profitable and generate positive cash flow, even if auto production volumes remain at existing levels. We now believe TRW can reach and sustain 3.5x adjusted leverage, with EBITDA of at least $1 billion and EBITDA margin of near 8% in 2010. We believe these credit measures can be sustained or improved in 2011 if production increases as we expect. TRW manufactures active and passive auto safety products (58% and 26% of 2009 revenues, respectively) and is
