Moody's upgrades debt rating of TRW Automotive

NEW YORK - Moody's Investors Service on Monday raised its rating on the debt of car parts maker TRW Automotive Inc., which has restructured and now faces an improving global economy.

Moody's, which also set its outlook at "Stable," raised its rating on the company's corporate family and probability of default to "B3" from "Caa1," both noninvestment-grade ratings.

The move reflects "improving operating performance after restructuring initiatives and Moody's expectation for improving global economic conditions and automotive production levels into 2010."

In afternoon trading, shares rose $2.17, or 11 percent, to $22.76, near their 52-week high of $22.80.

Moody's also raised the ratings of TRW senior secured credit facilities to "Ba3" from "B1," and raised the ratings for the guaranteed senior unsecured notes to "Caa1" from "Caa2."

Earlier this month, TRW reported third-quarter profit $56 million on cost cuts. TRW and other auto parts suppliers have been forced to slash costs as automakers cut production over the last year.

Moody's said new auto sales should rise about 15 percent next year in North America, which accounts for about 30 percent of TRW's revenue.

The company is expected to continue benefiting from its "strong position in safety products, and a sound level of geographic, customer, and product diversification," the agency said.

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