Fitch raises TRW rating 2 notches on improvement after auto parts drop

By AP
Monday, June 21, 2010

Fitch raises TRW rating by 2 notches

NEW YORK — Fitch Ratings lifted its credit rating for TRW Automotive Holdings Corp. by two notches Friday, citing the company’s effort to reduce debt and restructure during the recent economic downturn.

Fitch raised TRW’s rating to ‘BB’ from ‘B+’ in a change that will affect $2.2 billion of debt.

Despite the improvement, TRW remains in junk status. The company, which makes automobile safety systems like brakes, was battered like other auto parts suppliers by the recession and a steep decline in auto sales last year.

However, Fitch wrote that TRW should benefit from a resurgence in demand for autos. The ratings agency also noted that TRW was able as able to reduce debt and restructure, strengthening its position so that it could better withstand any unexpected future drops in the auto sector.

Company shares rose 32 cents to close at $32.98.

YOUR VIEW POINT
NAME : (REQUIRED)
MAIL : (REQUIRED)
will not be displayed
WEBSITE : (OPTIONAL)
YOUR
COMMENT :