Leading international defense contractor, with a portfolio of diverse, high-priority programs and a substantial order backlog; Generally favorable defense industry credit characteristics; and Good overall financial profile. Potential for additional acquisitions; and Growth of defense spending in most markets is likely to slow in future years. The ratings on BAE Systems PLC reflect its strong competitive positions in the global defense market, its participation in an industry with generally favorable credit characteristics, its good customer and geographic diversity, and an overall appropriate financial profile. These factors are offset by risks associated with potential additional acquisitions and likely slower growth in defense spending in most of the company's key markets. The ratings also incorporate Standard&Poor's Ratings Services' expectations that
