NEW YORK (AP) — Fitch Ratings on Tuesday downgraded its ratings of TRW Automotive Inc. on concerns over the continued weakness of the auto market.
Fitch lowered TRW's issuer default rating one notch to "B-" from "B'' on concerns that the global automotive downturn will cause the Michigan-based automotive components company's credit profile to deteriorate more than previously anticipated. Both ratings are considered non-investment, or "junk," grade.
The rating agency placed TRW on negative watch in December of 2008. Fitch said it will keep the watch in place because of uncertainty in the post-bankruptcy markets for General Motors Corp. and Chrysler LLC, which account for nearly a quarter of TRW's global sales. Fitch also expressed concerns about declining auto sales overseas affecting TRW's business.
Approximately $4 billion of debt is covered by the ratings.
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TRW shares fell 9 cents to $11.26 in afternoon trading.