NEW YORK (AP) — Standard & Poor's Ratings Services said Friday that it lifted TRW Automotive Holdings Corp.'s credit rating by one notch, out of junk status and back to investment grade. S&P said that the auto parts maker's outlook is stable.
The Livonia, Mich.-based company supplies automotive parts ranging from airbags to braking systems. In July, TRW reported a 13 percent increase in its second-quarter net income, boosted by higher manufacturer demand for auto parts. The company also increased its sales forecast for the year.
"We expect TRW to continue generating solid earnings and cash flow, with stable credit measures, despite the weak European automotive market and the company's investments for growth," said S&P's credit analyst Nancy Messer in a statement.
The credit ratings agency upgraded TRW Automotive's rating to "BBB-" from "BB+." That brings its business risk profile to "satisfactory" from "fair," S&P said.
The company is "pleased that S&P has taken this step, showing confidence in TRW's ability to sustain profits, maintain margins and grow the business," said TRW communications director Lynette Jackson in a statement.
Shares of TRW Automotive rose 74 cents, or 1 percent, to close at $70.73. The stock has steadily risen from a low of $42.45 a year ago to peak at a 52-week high of $74 in July.
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