Leading market position Fair product, customer, and geographic diversity Good technology and value-added content Declining cash flow and earnings, and tight covenants Highly competitive markets with pricing pressures Cyclically weak demand Relatively narrow business base The ratings on Livonia, Mich.-based TRW Automotive Inc. reflect the company's highly leveraged financial risk profile and vulnerable 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 $2.9 billion in total balance sheet debt outstanding as of Dec. 31, 2008. In Standard&Poor's Ratings Services' opinion, the deteriorating automotive production in most markets globally will cause significant worsening in TRW's credit profile during 2009. We
