A leading U.S. military contractor, with continued sizable (albeit slowing) U.S. defense outlays expected in the intermediate term; One of two global producers of commercial aircraft, benefiting from improved demand; Solid cash flow generation and manageable debt and capital expenditures requirements; and Very strong liquidity, with cash and marketable securities of $8.2 billion at Sept. 30, 2006. The company's markets are highly competitive and the commercial airplanes business is also cyclical; and Substantial underfunded retiree health care obligations, though large contributions and good asset returns have eliminated sizable pension deficit. The ratings on Boeing Co. are supported by the company's very strong position in defense and military space sectors; its position as one of two global producers of large commercial
