A leading U.S. military contractor; Continued sizable U.S. defense outlays expected in the intermediate term; One of two global producers of commercial aircraft, with improved demand prospects; Solid cash flow generation and liquidity; and Conservative financial policy. Defense spending growth is slowing; Substantial unfunded postretirement obligations, but large contributions reduced the pension deficit; and Ethical lapses in the defense and space segment and related investigations and litigation, although some matters were settled in 2005. The ratings on Chicago-based Boeing Co. are supported by its very strong position in defense and military space sectors; its position as one of two global producers of large commercial aircraft; efficient operations; and good overall financial performance, especially solid cash flow generation and ample liquidity.
