Summary: Sensata Technologies B.V. Mar 11

Standard & Poors, March 2011

Abstract
The ratings on Sensata Technologies B.V. reflect the company's aggressive financial risk profile and its satisfactory business risk profile. In 2011, we expect Sensata's adjusted operating margin (before depreciation and amortization) to remain very good at around 30%, and for revenue growth to exceed 10% (benefitting from the recently announced acquisition of the Honeywell Automotive On Board business). We believe credit measures may exceed our expectations for the current rating, including funds from operations (FFO) to debt of 15%-20%, but continued majority ownership by Bain Capital remains a risk, since it relates, in our view, to the company's financial policy. The company's sizable debt levels more than offset its good geographic diversification, solid operating margins, and decent operating prospects if...

Companies mentioned in this report are: Sensata Technologies B.V.,Texas Instruments Inc.,Honeywell International Inc.
Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

Sensata Technologies B.V.,Texas Instruments Inc.,Honeywell International Inc.

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