In our view, the likelihood of success of the A350XWB has improved considerably, and European Aeronautic Defence and Space Co. (EADS) has shown strong financial performance, with solid free cash flow generation and moderate dividend distributions. We think that EADS should be able to maintain a financial risk profile at the higher end of our modest financial risk profile category. We are therefore raising our long-term rating on EADS to 'A' from 'A-' and affirming the 'A-1' short-term rating. The stable outlook reflects our base-case scenario of gradually rising operating profits (EBIT), no substantial cash-effective charges for projects or programs, and a continuation of conservative financial policy, notably regarding larger acquisitions. FRANKFURT (Standard&Poor's) Sept. 6, 2013--Standard&Poor's
