Leading market position Fair product and geographic diversity Good technology and value-added content Highly competitive markets Cyclically weak demand Relatively narrow business base Somewhat concentrated customer base Exposure to volatile commodity prices The rating on TRW Automotive Inc. reflects Standard&Poor's Ratings Services' reassessment of TRW's financial risk profile as intermediate and its business risk profile as weak. The financial risk profile is intermediate because of the company's conservative financial policy, which has led to permanent debt reduction using discretionary cash flow, and high funds from operations (FFO) to total debt. TRW's profits and cash flow in 2010 benefited from the continuing recovery in global auto markets because the company significantly cut costs during the economic downturn that had
