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. TRW's profits and cash flow in 2011 benefited from the continuing recovery in global auto markets, even though auto sales were mixed in its key European market, because the company significantly cut costs during the economic downturn that had reduced its break-even level of sales in North America and Europe. In 2012, Standard&Poor's Ratings Services estimates TRW's revenues will rise only modestly, because we expect European production to decline by perhaps 5% this year,
