One of two global producers of commercial aircraft, benefiting from strong demand; A leading U.S. military contractor, with continued sizable (albeit slowing) U.S. defense outlays expected over the next two to three years; Substantial cash flow generation; and Very strong liquidity, with cash and equivalents of $8.9 billion on Sept. 30, 2007. Operates in highly competitive markets, and the commercial airplane business is also cyclical; Increased, albeit manageable, actions to enhance shareholder value; and Significant underfunded retiree health care obligations, although large contributions and good asset returns have eliminated a formerly sizable pension deficit. The ratings on Boeing Co. are supported by the company's position as one of two global producers of large commercial aircraft; a very strong position in
