Moody's raised TRW's corporate family and probability of default ratings to B2 from B3, and ratings of senior secured credit facilities to Ba2 from Ba3. It also raised ratings of guaranteed senior unsecured notes to B3 from Caa1. All of the ratings remain in speculative grade territory. The ratings outlook was changed to positive from stable.

TRW shares rose 15 cents to $27.25 in afternoon trading.

TRW, which makes seat belts, air bags, braking and steering systems and other parts, said last month that it earned $141 million in the fourth quarter, up from a $946 million loss in the same period in 2008. It also reported a $55 million annual profit for 2009.

Moody's said improving automotive production and restructuring actions benefited the company and will continue to pay off this year. Ford Motor Co., a TRW customer, said this week that it plans to increase North American production by 32 percent in the second quarter.

Moody's said TRW remains at risk. Approximately 20 percent of its 2009 revenues in North American operations came from Ford, General Motors Co. and Chrysler Group LLC, and GM and Chrysler could lose market share and face further restructurings, Moody's said.

Moody's also expects production in Europe to come under pressure in the second half of the year.