The ratings on TRW Automotive Inc. reflect Standard&Poor's Ratings Services' assessment of the company's business risk profile as weak and its financial risk profile as significant. We expect TRW to remain profitable and generate positive cash flow, even if auto production volumes remain at currently weak levels. TRW's credit measures have improved in 2010, reflecting the moderate recovery in auto markets, significant cost-cutting actions that reduced its breakeven level of sales, and the company's renewed attention to debt reduction and leverage, including the reduction of pension obligations. TRW manufactures active and passive auto safety products (58% and 26% of 2009 revenues, respectively) and is a major Tier 1 supplier to automakers in the global light-vehicle market. In our
