These transactions are characterized by a degree of financial leverage that significantly exceeds industry norms measured by various debt, cash flow, or other ratios.
Risks to the 2007 outlook include the possible consolidation of the domestic airline industry, weaker than anticipated economic activity that could reduce demand for air travel, the rising cost of construction materials that may lead airports to use a higher degree of financial leverage, and/or an unexpected surge in fuel prices or other external events that could both weaken airline financial performance and reduce demand for air travel.
Offsetting considerations include further decline in market position, increased exposure to equities and funds and a higher degree of financial leverage.
Expected pro-forma capitalization of TRW Automotive at December 31, 2002, showed a high degree of financial leverage with total debt, including $245 million of A/R securitized funding and $600 million of seller notes, amounting to around $3.
The important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, without limitation, the Company's degree of financial leverage, risks associated with debt service requirements and interest rate fluctuations, risks associated with any possible acquisitions and the integration thereof, risks of international business, including currency risk, dependence on availability of interconnection facilities, regulation risks, contingent liabilities, collection risks, and the impact of competitive services and pricing, as well as other risks referred in the Company's filings with the CVM and SEC.
These rating actions reflect the degree of financial leverage maintained at the insurance holding company, Americo Life, relative to its interest coverage and the level of intangible assets on the group's balance sheet compared to its equity base.
Partially offsetting these positive rating factors are concerns regarding GE's long-term commitment to GE Global due to the latter's protracted decline in operating performance, moderate degree of financial leverage and continued potential for adverse reserve development.
