S&P ups TRW outlook to stable

Standard & Poor's said it has revised its outlook on TRW Automotive Inc. to stable from negative and affirmed the ratings, including the B corporate credit rating.

"The outlook revision follows its analysis of the company's intermediate-term financial prospects in light of its better-than-expected second-quarter earnings, which benefited from aggressive fixed-cost reductions," said S&P credit analyst Nancy Messer.

"We believe some portion of the cost reductions will continue to benefit cash flow generation, even when auto production increases in North America and Europe," she continued.

The outlook revision also reflects the company's recent equity offering, which in its view gives credence to TRW's goal of deleveraging the balance sheet, the agency noted, adding that the company received proceeds of about $269 million, which it will use to reduce senior secured debt.

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