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NEW YORK, Jan 29 (Reuters) - Fitch on Thursday raised TRW Automotive's indicative debt ratings, assuming the company completes its scheduled initial public offering, citing the company's reducing its quantity of debt relative to equity.
TRW Automotive Holdings Corp. said late last year that it intends to raise about $328 million through selling common stock, which it intends to use to pay down long-term debt.
Fitch Ratings said it was upgrading TRW Automotive's indicative ratings for senior notes to "BB-minus," its third highest junk rating, from "B-plus." For senior subordinated notes, Fitch upgraded TRW Automotive to "B-plus," its fourth highest rating, from "B." For senior secured bank debt, Fitch upgraded TRW to "BB-plus," its highest junk rating, from "BB."
About $3.3 billion of debt is affected by these moves, Fitch said.
TRW is owned by the Blackstone Group, a private equity firm that bought the company early last year from defense contractor Northrop Grumman Corp. .