S&P: TRW Automotive unchanged

Standard & Poor's said that TRW Automotive Inc.'s (BB+/stable/A-3) announcement that it intends to issue 6.7 million common shares and, separately, to repurchase 9.7 million shares of TRW's common stock from former owner Northrop Grumman does not affect the rating.

S&P added that TRW expects to fund the purchase of the Northrop Grumman shares, at an estimated cost of $210 million, using proceeds of the stock offering, estimated at $155 million, cash and a draw on its revolving credit facility.

The share repurchase will eliminate Northrop Grumman's ownership position in the TRW shares, the agency said, adding that although TRW's capital structure will modestly deteriorate as a result of the net effect of these transactions, of more importance to the rating is how the company manages the difficult automotive industry environment in the months ahead.

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