Role as leading international defense contractor, with a portfolio of diverse, high-priority programs, substantial order backlog of about £40 billion, and high share of service and support revenues. Generally favorable defense industry credit characteristics. Good overall financial profile with track record of solid free cash flow generation and strong financial flexibility. Potential for additional acquisitions. Operating risks inherent in large defense projects. Likelihood that defense spending in most markets will decline in the coming years. The ratings on U.K.-headquartered defense contractor BAE Systems PLC reflect our view of the group's strong competitive positions in the global defense market through a portfolio of diverse high-priority programs. BAE Systems is a global defense, aerospace, and security group. It provides a full range
