Fitch: TRW Automotive unchanged

Fitch Ratings said the current ratings on TRW Automotive, including the senior secured debt at BB+, senior unsecured debt at BB- and subordinated debt at B+, are unchanged after the company announced a definitive agreement to acquire 68.4% of Dalphi Metal Espana SA (Dalphimetal) plus assumption of euro-denominated debt for a total of $240 million.

The outlook is stable.

Despite the turbulent North American industry environment since the beginning of 2005, the company has been cash flow positive, benefiting from its focus on technologies that meet customer needs for safety and fuel economy, as well as a significantly diverse customer base and geographic sales mix, the agency noted.

Fitch said it believes that post-acquisition debt balances and credit metrics would be within the current rating category and that the acquisition only defers further expected debt reduction from free cash flow.

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