Leading international defense contractor, with a portfolio of diverse, high-priority programs, and a substantial order backlog. Generally favorable credit characteristics of the defense industry. Good overall financial profile and a 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 growth of defense spending in most markets will slow in the coming years. The ratings on the U.K.-headquartered defense contractor BAE Systems PLC reflect Standard&Poor's Ratings Services' view of BAE Systems' strong competitive positions in the global defense market through a portfolio of diverse high-priority programs. BAE Systems designs, develops, and manufacturers a wide range of land-combat vehicles and armaments, defense electronics, submarines,
