Fitch upgrades TRW Automotive on cost cuts

NEW YORK - Fitch Ratings on Monday upgraded its ratings on TRW Automotive Holdings Corp., citing the auto parts supplier's cost-cutting efforts and better earnings expectations.

The credit ratings agency upgraded its issuer default rating on TRW one notch to "B" from "B-," still keeping it within non-investment grade territory.

Fitch also said it expects to rate TRW's new unsecured exchangeable notes "CCC/RR6." It also upgraded other ratings on Fitch, affecting a total of $2.5 billion of the company's debt.

Fitch said the upgrades reflect a "significant improvement" in TRW's credit profile following deep cost-cutting moves, a better auto production outlook and a recent equity offering.

Parts suppliers like TRW, which makes chassis, safety and other automotive systems, were hit hard by the downturn in auto sales. But their fortunes have picked up recently as consumers start buying cars again and auto production restarts.

Earlier this month, TRW posted a third-quarter profit of $56 million, recovering from a loss in the previous year. Deep cost cuts helped boost the Livonia, Mich. company's bottom line.

Earlier Monday, the company issued $225 million in senior exchangeable notes due 2015.

Shares of TRW fell $1.09, or 4.7 percent, to close Monday at $21.89.

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