Fitch rates TRW Automotive loan BB+

Fitch Ratings said it assigned an indicative rating of BB+ to the proposed new $300 million term loan, which will be utilized to take-out TRW Automotive Intermediate Holdings Corp.'s existing $600 million pay-in-kind seller note, payable to Northrop Grumman Corp.

Fitch said it views the transaction positively; although, it will result in higher cash interest payments (the seller note currently accrues interest).

The transaction also brings this debt down to the operating company from the holding company, which will dilute the asset and structural protection of the senior secured lenders under the existing structure, according to Fitch.

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