Leading market position Fair product, customer, and geographic diversity Good technology and value-added content Highly competitive markets with pricing pressures Cyclical demand Relatively narrow business base Aggressive leverage The ratings on Livonia, Mich.-based TRW Automotive Inc. reflect the company's aggressive financial risk profile, characterized by heavy debt, and weak business risk profile as a global manufacturer of original equipment (OE) auto parts for light vehicles. TRW designs and manufactures active and passive safety-related products. The company had $3.2 billion in total balance sheet debt outstanding as of Sept. 26, 2008. TRW's weak business risk profile reflects the highly competitive nature of the global automotive markets, volatile raw material costs, and the company's almost complete reliance on light-vehicle sales. Somewhat offsetting
